FxWirePro: USD/JPY hits 8-month high at 107.15, weekly Jobless Claims and Powell's speech in focus for further impetus
USD/JPY chart - Trading View
USD/JPY was trading rangebound as the major consolidates previous session's gains.
The pair tests 50% Fib at 107.153 on Wednesday's trade and hit levels unseen since 23rd July 2020.
S&P 500 Futures struggle to keep 3,800 as reflation fears return to the table ahead of Fed’s Powell.
Cyberattack on Microsoft’s email server linked from China and a rumored plot for another attack on the US Capitol Hill on Thursday keep risk appetite low.
US 10-year Treasury yields rise 1.1 basis points to 1.48%, while Asian stocks remain under pressure amid rising risk-off.
USD/JPY trades with a major bullish bias. The pair is testing resistance at 110W EMA (107.13) and 50% Fib (107.153). Break above will fuel further gains.
Major Support Levels:
S1: 106.80 (5-DMA)
S2: 106.75 (110-month EMA)
S3: 106.16 (200H MA)
Major Resistance Levels:
R1: 107.13 (110W EMA)
R2: 107.153 (50% Fib)
R3: 107.87 (55-month EMA)
Summary: USD/JPY consolidates around 8-month highs. Bullish bias intact, but overbought oscillators warrant some caution. Stiff resistance is seen at 107.15, decisive break above required for upside continuation. Fed’s Powell, second-tier job data will be the key together with the risk catalysts to determine price action.