USD/JPY rebounds sharply from monthly lows, prints daily highs above 108.00
- Japanese yen tumbles across the board amid risk appetite and higher yields.
- USD/JPY about to end negative streak with a sharp reversal.
The USD/JPY bottomed at 107.42 hours ago, hitting the lowest level since March 4. Since then it gained more than 60 pips. It rose to 108.14 in a few minutes, making a sharp reversal. As of writing, it is hovering around 108.00, modestly higher for the day but now, momentum points to the upside.
Rising US yields trigger the rally in USD/JPY. The 10-year yield tested at 1.53%, the weekly low and then jumped to 1.579%. Economic data from the US contributed to the rebound. New Home sales rose more than 20% in March and the Markit PMI climbed above expectations in April according to preliminary data, hitting new record highs.
Another factor that weakened the yes was risk appetite. US stocks bounced and turned positive. The Dow Jones is back above 34,000, up by 0.60% while the Nasdaq rises by more than 1%.
If the USD/JPY pair can hold at current levels it would offer a sign of a reversal by recovering 108.00 and the 55-day moving average. The dollar could post the first gains after falling during four consecutive days. On a weekly basis is still in negative ground, headed toward the third weekly decline in a row.
Technical levels
Reprinted from FXStreet，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.