USD/JPY Price Analysis: Gains momentum on rising US Treasury bond yields
17.04.2023, 17:52

USD/JPY Price Analysis: Gains momentum on rising US Treasury bond yields

  • USD/JPY reached fresh five-week highs at 134.57, with bulls eyeing 135.00.
  • Oscillators at bullish areas favor further upside in the USD/JPY.
  • Downside risks lie below 134.00, which could drive the USD/JPY towards 133.00.

The USD/JPY moved higher as US Treasury bond yields resumed their uptrend, following the last week’s hawkish commentary by Federal Reserve (Fed) officials. Fed Board Governor Christopher Waller’s comments that more tightening is needed, triggered the latest jump in the 10-year US T-bond yield. Therefore, the USD/JPY rallied and is trading at 134.47, up 0.52%.

USD/JPY Price Action

The USD/JPY extended its gains past the last week’s high of 134.04, and it’s aiming to challenge a break above January 6 high at 134.77. On its way up, the USD/JPY climbed above several solid resistance areas, like the 200-day Exponential Moving Average (EMA) EMA at 133.70, followed by the 100-day Exponential Moving Average (EMA) at 134.00. Once the pair cleared those levels, a challenge to 135.00 is on the cards.

The Relative Strength Index (RSI) cements the upward case in bullish territory, while the Rate of Change (RoC) indicates that buying pressure is increasing.

If USD/JPY rallies above 135.00, the next resistance would be 136.00, followed by the psychological 137.00 level before testing the YTD high at 137.91. Conversely, if the USD/JPY retraces, the first support would be 100-day EMA at 134.00. A breach of the latter will immediately expose the 200-day EMA at 133.70, followed by the 50-day EMA At 133.14, before sliding to 133.00.

USD/JPY Daily Chart

USD/JPHY Daily Chart

USD/JPY Technical Levels

 

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