The USD/JPY pair experienced a slight increase during the North American session, driven by sustained higher US Treasury yields, particularly the 10-year Treasury note, which rose nearly four basis points to 4.104%. This positive correlation between the US 10-year yield and the USD/JPY pushed the exchange rate to 149.13, reflecting a gain of 0.37%.
Technical Analysis of USD/JPY
Currently, the USD/JPY maintains a neutral bias while trading within the higher range of 148.00 to 149.50, as traders await signals regarding the next moves from the Federal Reserve and the Bank of Japan.
From a momentum perspective, buyers are in control; however, the Relative Strength Index (RSI) has yet to reach a new peak that could propel USD/JPY prices higher. If the pair breaks through the 149.50 level, it would likely expose the key psychological mark of 150.00. Beyond this, the next resistance levels are found at the confluence of the 200-day and 100-day moving averages, situated around 151.20/21.
Conversely, if USD/JPY dips below the 149.00 mark, traders should anticipate a pullback toward the swing low of 147.35 established on October 8.
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