- The DXY prints new monthly highs above 91.50, pointing to higher gains.
- US yields are on an uptrend, supporting the dollar.
- US economic data beat expectations, focus on NFP.
USD / JPY is rising for the seventh consecutive trading day and has accelerated to the upside. The pair consolidated above 105.00 and jumped to 105.49, reaching the highest level since mid-November.
The key driver remains a stronger US dollar across the board and higher returns. The US 10-year yield is below 1.16%, its highest level since March. The dollar is rising across the boardeven against emerging market currencies. Wall Street indices are up more than 0.50%.
The DXY is up 0.30% to 91.50, a level not seen since early December. Gains were tempered by the rally in the pound following the Bank of England meeting that boosted GBP / USD.
US economic data showed a larger-than-expected drop in jobless claims, supporting expectations of a positive surprise on Friday for January employment data. The rank on Non-Farm Payrolls now goes from a loss of 200,000 jobs to a gain of 450,000. Also on Friday, in Japan, the December household expenditure report is released.
Technical factors also contribute to the rally in USD / JPY. The pair broke an eight-month trend line on Monday, retraced to the line, and resumed higher. The next resistance emerges at 105.65 / 70, the November high.
Technical levels
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