USD/JPY Forecast: Imminent bullish breakout
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The USD/JPY pair peaked at 109.63 this Wednesday as higher US inflation sent government bond yields to one-month highs. The yield on the 10-year Treasury note reached 1.69%, just below the critical 1.70% level that spurred substantial dollar gains back in March. The pair trades near the mentioned high, despite Wall Street plummeted, as higher US inflation readings lifted concerns about a sooner than expected tighter monetary policy in the country.To get more news about WikiFX, you can visit wikifx.com official website.
Japan published the preliminary estimate of the March Leading Economic Index, which improved to 103.2 from 98.7 previously. The Coincident Index came in at 93.1 from 89.9 in February. Early on Thursday, the country will report the March Current Account and the April Eco Watchers Survey.
USD/JPY short-term technical outlook The USD/JPY pair is trading in the 109.50 price zone, consolidating gains. In the 4-hour chart, the pair has advanced above all of its moving averages, which anyway lack directional strength. Technical indicators lost directional strength after reaching overbought readings but lack clear directional strength. The pair topped at 109.69 this month, with a break above the level favoring a bullish continuation.