USD/JPY Forecast: Poised To Challenge The 110.00 Figure

USD/JPY Current Price: 109.76

  • Better-than-expected US data sent yields to fresh weekly highs.
  • Japanese  Jibun Bank Services PMI for January resulted at 51, below the expected 52.1.
  • USD/JPY poised to challenge the 110.00 figure, scope to retest recent highs at 110.28.

The USD/JPY pair has reached a fresh 2-week high of 109.84, amid persistent dollar’s strength, compliments to robust US data and rallying equities. Ever since the week started, better-than-anticipated US macroeconomic figures have fueled demand for local equities, which slowly approach to record highs after ending January in the red. US Treasury yields advanced for a third consecutive day, with the yield on the benchmark 10-year note hitting 1.66%, and settling not far below this last.

Japan published the Jibun Bank Services PMI for January at the beginning of the day, which resulted at 51, below the expected 52.1. The country won’t provide relevant data during the upcoming Asian session.

USD/JPY Short-Term Technical Outlook

The USD/JPY pair retains its gains ahead of the Asian opening, overbought in the short-term. The 4-hour chart shows that the pair is consolidating above its moving averages, with the 20 SMA gaining traction upward below the larger ones, which remain directionless. Technical indicators have turned flat within overbought levels, reflecting the ongoing consolidation. The risk is skewed to the upside, with further gains expected once beyond 109.90.

Image Sourced from Pixabay

Posted In: FXStreetUSD/JPYNewsCommoditiesForexGlobalMarketsGeneral

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.