USD/JPY trades near the highs for the day as US 10-year yields hold above 3%
The story so far has been that of yields, and with 10-year yields staying above the 3% threshold it’s helping to keep the dollar bid so far in the session. USD/JPY is trading just above 109.90 currently, and looks set for a move towards the 110.00 level again.
Previous two attempts at the figure level stalled as there is also resistance in the form of the 50.0 retracement level @ 109.93 so this is a pivotal test for the pair. However, clearing the figure level isn’t a win just yet for buyers as there is also the 200-day MA (blue line) lurking nearby @ 110.18. But psychologically, breaking and holding above the figure level would be key for buyers to at least take encouragement in a bid to bring up the pair.
If we are looking for any breakouts today, do keep an eye out for yields too.