- A combination of factors helps the USD / JPY capture some new purchases on Friday.
- Risk appetite weighs on the safe-haven JPY and supports the pair’s upward move.
- The rally in US bond yields benefits the USD and provides additional momentum.
The pair USD/JPY maintains its buying tone during the European session on Friday and is has reached new one-week highs around 110.50 in the last hour.
After the modest retracement of the previous day, the USD / JPY pair has attracted some buying near the key psychological level of 110.00 and it has built on this week’s good bounce from the 109.00 region. This marks the third day of positive movement in the previous four sessions and has been supported by risk appetite in the markets.
The investors they seem to have sidelined concerns about potential economic consequences of the fast-spreading Delta variant of the coronavirus. This has been evident by a generally positive tone around equity markets, which in turn has weighed on the safe-haven Japanese yen and it has been seen as a key factor that has propelled the USD / JPY pair higher.
The bulls took even more indications from a strong rebound in U.S. Treasury yields. In fact, the benchmark 10-year US government bond yield has once again approached the 1.30% level and acted as a tailwind for the US dollar. This has also contributed to the positive intraday movement of the pair. USD / JPY highest since July 14.
Market participants are now awaiting the US economic calendar, which includes the release of preliminary Markt PMIs. This, along with US bond yields, could influence USD price dynamics. Investors will take more indications of the broader market risk sentiment for some short-term opportunities around the USD / JPY pair.
Technical levels to observe
USD/JPY
| Overview | |
|---|---|
| Today last price | 110.45 |
| Today I change daily | 0.32 |
| Today daily change% | 0.29 |
| Today they open every day | 110.13 |
| Trends | |
|---|---|
| Daily SMA20 | 110.41 |
| SMA50 daily | 109.97 |
| SMA100 daily | 109.52 |
| SMA200 daily | 106.99 |
| Levels | |
|---|---|
| Previous Daily High | 110.36 |
| Previous Daily Low | 110.01 |
| Previous weekly high | 110.7 |
| Previous Weekly Low | 109.71 |
| Previous monthly maximum | 111.12 |
| Previous Monthly Low | 109.19 |
| Daily Fibonacci 38.2% | 110.15 |
| Daily Fibonacci 61.8% | 110.23 |
| Daily Pivot Point S1 | 109.98 |
| S2 daily pivot point | 109.82 |
| S3 Daily Pivot Point | 109.63 |
| R1 daily pivot point | 110.32 |
| Daily pivot point R2 | 110.51 |
| R3 daily pivot point | 110.67 |
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