- The yen plummets across the board on rising returns and risk appetite.
- The dollar has mixed results, DXY lateralized hovering around 90.00.
The USD/JPY it extended the bullish move and rose to 109.86, reaching the highest level since April 9. It remains near the top of the range, with the bullish momentum intact, looking at the 110.00 level.
The USD / JPY rally came amid a surge in Wall Street stock prices and amid a drop in Treasuries. The 10-year yield rose to 1.62%, the highest level since Monday.
Economic data showed that initial jobless claims fell to 406,000, a new pandemic low, while durable goods orders fell unexpectedly, although details in the report were positive. The second reading of GDP for the first quarter showed that the economy expanded at an annualized rate of 6.4%. Reports that US President Biden plans to increase federal spending significantly over the next several years boosted market sentiment.
Looking to the upside above 109.70
The USD / JPY move gained more strength from a technical perspective after breaking the 109.45 50 barrier and then 109.70. As long as it remains above 109.70, the bullish momentum will remain intact. On the upside, the next resistance is at 109.95 followed by 110.15.
The pair is making the biggest daily gain so far since May 12, posting two consecutive gains for the first time in May. Only a few readings of overbought conditions on short-term technical indicators suggest a pause. The pair shows that it can go higher and the key level now appears to be 110.00.
Technical levels
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