USD/JPY: bulls lose conviction on 107, folding at key resistance
- USD/JPY losing its conviction on 107 handle.
- USD/JPY: meets key resistance and folds.
USD/JPY: USD/JPY met the 30 min 200 SMA and was rejected there at 107.00/10 as the level prove to be a tough nut to crack making for a triple top here since business on the 22nd. Currently, USD/JPY is trading at 106.93, up 0.00% on the day, having posted a daily high at 107.11 and low at 106.88.
Forex today: Central Bank divergence supports focus for 90.00 DXY
The bulls were taking control in the European and US markets on the back of Kuroda's dovish stance yesterday. The dollar was boosted again by the markets scaling back on ECB expectations as well. The US stocks were also aiding the decline in the yen that was sent lower onto the 107 handle by the close of play with a number of probes there throughout the US session.
Funda and political wrap for US session: Draghi's usual cautious script weighed on EUR/USD
US yields a drag
However, US yields were not as impressive with the 10yr treasury yields extended Friday’s decline to 2.83%, before picking back up to 2.8733%.The Fed fund futures yields, these continued to price a 90% chance of another rate hike in March with a total of four hikes priced by end-2019.
USD/JPY levels
Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, it shows that the 100 SMA continues accelerating south well above the current level:
"The price hovers around the 38.2% retracement of its latest bullish move, while the Momentum indicator aims higher within neutral territory as the RSI indicator turned flat around 50, all of which indicates a limited upward potential."