Economy Forex News

USD/JPY approaches 115.00 after Powell’s reappointment

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  • USD/JPY remained subdued in the overnight session, but following Powell’s news, gained 60 pips.
  • On Friday, Fed’s Waller and Clarida expressed interest in faster bond tapering, should inflation accelerate.
  • Rising US Treasury yields approaching 1.60% lifted USD/JPY.

USD/JPY rises during the U.S. session, trading at five-year highs, up 0.59%, trading at 114.67 at the time of writing. Market sentiment is upbeat, boosted by US President Biden reappointing Powell as Fed Chairman. In addition, some Fed policymakers expressed that they would like to increase the pace of tapering, concerned that inflation could get out of hand.

The USD/JPY pair remained sluggish overnight, trading in the 114.00-114.27 range. The re-election of Fed Chair Powell, on the other hand, increased investor confidence during the US session, raising the major US stock indices along with US Treasuries and the dollar.

USD/JPY

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The US dollar index, which gauges the greenback’s performance against a basket of peers, is up 0.43 percent at 96.45, clinging to the 96.40 level as the US session unfolds. Furthermore, rising US Treasury yields help the USD. The 10-year rates increased by 5 basis points to 1.593 percent, bolstering the dollar against the yen.

USD/JPY Price Forecast: Technical Outlook

USD/JPY has an upward tilt on the daily chart. Although the daily moving averages (DMA) are below the current price, they are nearing a level of interest around the 114.70-115.00 zone, which has been breached three times failed. A daily break above the 115.00 level, on the other hand, would open the door to more advances. The first point of resistance would be around 118.66, which was the swing high in December 2016.

The initial support, on the other hand, would be the November 19 high of 114.53. A break below that level would expose 114.00, followed by the November 19 low at 113.58.

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Michelle D. Madsen

Michelle D. Madsen graduated from the University of Westminster and has been deeply involved in the world of finance ever since. She has worked as a Broadcast Journalist hosting various news shows and informative webcasts about the financial markets. Since 2004 she has also been writing for Metanews daily, her attention to detail, and her in-depth knowledge of the financial markets have led her to cover Foreign Exchange and commodities. The world of finance has changed in the last few years with the introduction and rising popularity of cryptocurrencies. She has in no means been left behind, adding this to her bank of intellect and is now also an expert in cryptocurrencies. For the last ten years, Ms. Madsen has been engaged in the financial market. She has notedly written a great number of incredibly informative reviews for the crypto exchange and forex brokers. Her wealth of knowledge has enabled her to become a leading expert in the field. She continues to inform the public writing up-to-date, thorough reviews for the readers of Metanews as she has for the last decade.
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