USD/JPY beneficial properties stay restricted by key trendline resistance ranges because the market awaits additional clues from the Fed and Biden’s proposal
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10-year yields jumped to 1.115% earlier however has now retreated to 1.098%.
In flip, the early leap within the greenback has largely pale with USD/JPY easing again in the direction of 104.00 after having hit a excessive of 104.20 earlier within the day.
As issues stand, the important thing trendline resistance ranges which have been in play because the latter phases of final week are nonetheless very a lot in play proper now.
That rests within the area of 104.10-27 and serves to restrict any upside momentum within the pair in the meanwhile, as we await extra clues from Powell and Biden.
Trying past that, there’s additionally the 100-day transferring common (crimson line) @ 104.64 – a key technical degree that hasn’t been breached since early June final 12 months.
Placing all of that collectively, the chance ranges for any main shove greater within the pair is kind of clearly outlined as per the technical ranges above. A breach past these ranges will solidify an extra push within the pair – and the greenback – in the direction of 105.00 not less than after which some.
As a lot as one can argue that extra stimulus spending may also be destructive for the buck, it’s powerful to argue with the charts and USD/JPY holds the important thing in that regard.