USD / JPY rises further to two-month highs above 110.20

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  • The US dollar extends gains during the US session, after a short pause.
  • USD / JPY driven by returns and rising stock prices.

The USD/JPY it continues to rise and broke above the May highs at 110.20 and reached the 110.29 level, touching the highest level since early April. The pair remains near the top of the range as the US dollar is trading at new highs against most of its rivals.

The USD / JPY rally started after the release of the ADP reports and was later bolstered by the jobless claims data and the ISM services sector report. The better-than-expected numbers bode well for Friday’s official employment report.

Wall Street is having a volatile session. The main indices cut losses and the Dow Jones turned positive, gaining 0.08%; at the same time, the Nasdaq falls 0.95%. The 10-year yield is up nearly 2%, close to 1.62%.

Short-term levels

If USD / JPY continues to rise, the next resistance is seen at 110.50, followed by 110.75, and the yearly high emerges at 110.95. A pullback below 110.20 would ease the bullish pressure. Still, a daily close above 109.90 would improve the outlook for the dollar. Some overbought readings warn of the likelihood of further gains for the dollar.

Technical levels

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