USD/JPY Price Analysis: Risk-off market mood increased demand for JPY, which hovers around 115.08

• The market sentiment is downbeat as the Ukraine – Russia war escalates as Western countries impose harsh sanctions on Russia.
• The US Dollar Index rises 0.20%, while US Treasury yields fall.
• USD/JPY Technical Outlook: Despite falling in the day, the pair is upward biased and could probe the YTD high at 116.35 in the short term.

On Monday, financial markets’ risk appetite got dampened by increasing concerns around the Ukraine – Russia conflict that escalated on Saturday, amid Western countries imposing stringent sanctions to Russia, to some of its government officials, and to Russian oligarchs linked to the Vladimir Putin regime. At the time of writing, the USD/JPY is trading at 115.07.

In the meantime, US Treasury yields closely correlated to USD/JPY price action behavior fall. The US 10-year benchmark note falls eleven basis points, from 1.927% to 1.873%, a headwind for the USD/JPY. The greenback, sought as a safe-haven asset, rises as portrayed by the US Dollar Index, which measures the buck’s value vs. a basket of rivals, sits at 96.81, up 0.20%.

Earlier in the Asian Pacific session, the USD/JPY recorded its daily high at 115.77, followed by a drop towards the daily low at 114.97 in the last two hours, followed by a sudden jump above the 115.00 mark.

USD/JPY Price Forecast: Technical outlook

The USD/JPY is upward biased, as shown by the daily chart and its moving averages (DMAs) located above the spot price, aiming higher, as depicted by the upslope. Worth noting that the USD/JPY jumped off the 50-day moving average (DMA) at 114.94, and if it achieves a daily close above February’s 25 low at 115.14, it could open the door for further gains.

Hence, the USD/JPY first resistance would be February 25 daily high at 115.75. Breach of the latter would expose the 116.00 mark, followed by the YTD high at 116.35.