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USD/JPY rallies on rising US yields, 148.70 a key resistance

  • The Dollar cuts losses and approaches the resistance of 148.70.
  • Rising US yields are supporting the Dollar ahead of Powell’s speech.
  • The Bank of Japan’s monetary policy normalization in 2024 is expected to support the Yen.

The Dollar is trying to recover from 2 1/2 month lows at 146.65, helped by a slight recovery in US Treasury yields, which is weighing on the Japanese Yen.

However, the overall trend remains negative, as weak US inflation and somewhat weaker macroeconomic data have all but confirmed the end of the Federal Reserve’s tightening cycle.

All eyes on Fed Powell conference

Also on Thursday, New York Fed President John Wiliams suggested interest rates could be at an all-time high, supporting that view. In this context, the conference by Fed President Powell, scheduled for today, will be analyzed in detail to evaluate the entity’s next steps.

On the other hand, growing expectations that the Bank of Japan will abandon its ultra-loose monetary policy in 2024 are providing some support to the Yen.

From a broader perspective, the pair maintains the bearish bias from the mid-November highs near 152.00, with resistance at 148.75 most likely limiting bulls ahead of the November 22-23 highs at 149.75. Supports are 147.77 and 146.65.

Technical levels to monitor

USD/JPY

Overview
Latest price today 148.12
Today Daily Change -0.12
Today’s daily variation -0.08
Today’s daily opening 148.24
Trends
daily SMA20 149.72
daily SMA50 149.63
SMA100 daily 147.09
SMA200 daily 142.04
Levels
Previous daily high 148.52
Previous daily low 146.84
Previous weekly high 149.99
Previous weekly low 147.16
Previous Monthly High 151.91
Previous monthly low 146.67
Daily Fibonacci 38.2 147.88
Fibonacci 61.8% daily 147.48
Daily Pivot Point S1 147.22
Daily Pivot Point S2 146.19
Daily Pivot Point S3 145.54
Daily Pivot Point R1 148.89
Daily Pivot Point R2 149.54
Daily Pivot Point R3 150.56

Source: Fx Street

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