The USDJPY pair has moved back above key technical resistance, found at 112.70, as the U.S dollar index continues to hold firm above the key 93.00 handle and US-Japanese 10-year bond yield spreads continue to widen.
A number of financial markets in Asia are away on holiday today, which has created low trading volumes and depressed trading ranges in the Asian session. The USDJPY pair is expected to remain intraday bullish whilst holding above the 112.70 level.
Today, the USDJPY pair will be driven by high-impact United States economic data, as we see the release of key manufacturing data likely setting the intraday direction for the pair.
The U.S dollar index is also expected to be a key driver of the pair, with traders looking for further technical confirmation, after last week’s key break-out above the U.S dollar index’s 200-week moving average.
Key intraday USDJPY support is found at the 112.70 and the pairs daily pivot point, at 112.49. Once below 112.49, further support is found at the former weekly price-low, at 112.21 and the pairs 50-week moving average, at 111.89.
Key intraday USDJPY resistance is found at the 112.91 and the former weekly price high, at 113.25. Once above the 113.25 level, further strong resistance is found at 113.57 and 113.89.
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