FxWirePro: USD/JPY tests 108 handle, UST yields surge pushing the dollar higher as Powell dismissed bond rout
FxWirePro: USD/JPY grinds sideways between major moving averages, breakout required for clear direction
USD/JPY chart - Trading View
USD/JPY was trading largely muted at 103.75 as the pair remains sandwiched between major EMAs.
The prevalent cautious mood amid the ever-increasing COVID-19 cases benefitted the safe-haven Japanese yen, adding pressure on the pair.
Pullback in the US Treasury bond yields further contributed to the offered tone surrounding the pair.
Major trend in the pair is bearish and recovery in the pair was capped below channel top resistance.
Price action was rejected at daily cloud and oscillators have turned bearish. Break below 21-EMA will plummet prices further. Scope then for test of trendline support at 102.45.
On the flipside the pair finds series of resistances upto 104.64 (cloud top). Break above cloud will fuel some upside.