- Dollar gains momentum across the board, DXY turns positive.
- US economic data shows numbers above market consensus.
- USD/JPY bullish in the very short term.
USD/JPY broke above 135.50 and jumped above 136.00 extending the rally from multi-month lows. The dollar is generally higher on the back of better-than-expected economic data and rising Treasury yields.
The dollar strengthens further after the US data.
US economic data beat expectations on Monday, helping the dollar. The S&P Global Composite PMI was revised from a preliminary reading of 46.3 to 46.4 in November. Factory orders in October rose 1% beating expectations for a 0.7% increase. The November ISM Services PMI rose from 54.4 to 56.5. The prices paid index fell from 70.7 to 70.
The Dollar Index (DXY) rose 0.40% after touching the 104.11 level on Monday, the lowest level since June. The more positive tone around the dollar helped push USD/JPY higher.
The pair broke above 135.50 and rose to 136.40, hitting the highest level since Thursday. It is holding near the high, with the bullish momentum intact. The next resistance zone is around 136.60, followed by 137.00.
136.00 has become immediate support, followed by 135.50/55. The recovery of the dollar is being supported by the indicators on the 4 hour chart with the RSI moving north, breaking the 30 level and the Impulse turning higher as well. Based on the indicators, more gains appear likely before a further leg down.
technical levels
Source: Fx Street
I am a writer for World Stock Market. I have been working in finance for over 7-8 years, and I have experience with a variety of financial instruments. My work has taken me to Japan, China, Europe, and the United States. I speak Japanese and Chinese fluently.
