- The US dollar remains on offer, supported above 111.25.
- The US / Japan bond yield spread is driving the greenback rally.
- Analysts at Credit Suisse believe that the USD is likely to reach levels above 117.00.
The U.S. dollar it failed in its first attempt to break the year-to-date high of 111.65 on Tuesday and the pair gave up some ground to find support above 111.25.
The USD remains driven by higher US yields.
Despite the recent reversal, the short-term USD / JPY trend remains positive after a five-day winning streak. The US dollar has appreciated more than 2% in the past five days, driven by the rebound in US bond yields amid signals from the Federal Reserve towards the end of the quantitative easing era.
The bond yield spread between the US and Japan, with the Bank of Japan’s yield curve control policy keeping the 10-year yield at 0%, has offset the impact of slightly more sentiment. sour caused by concerns about a debt crisis at China’s construction giant Evergrande, which provided support to the safe-haven Japanese yen.
USD / JPY: Probably supere los 117.00 – Credit Suisse
Credit Suisse’s currency analysis team sees the dollar moving higher, driven by a strong appreciation in US yields: “While the 112.23 / 40 resistance must be respected, an eventual breakout would complete a large and important base. to signal a higher, more sustained turnaround. We expect this to provide the platform for a move to the 2018 highs at 114.25 / 55 initially, with room for 117.20 in due course, the long-term downtrend since April 1990. “
Technical levels
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