The USD/JPY pair maintained its bid tone heading into the European session and was last seen trading just above the key 115.00 psychological mark, or a multi-year peak.

The pair built on the previous day's strong positive move and gained some follow-through traction for the second successive day on Tuesday. The momentum pushed the USD/JPY pair to the highest level since March 2017 and was sponsored by the prevalent bullish sentiment surrounding the US dollar.

US President Joe Biden formally nominated Jerome Powell to serve as the chairman of the Federal Reserve for a second term. The announcement cemented speculations for an early policy tightening by the Fed, which, in turn, was seen as a key factor that continued underpinning the greenback.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

As the New York session progresses, the US Dollar Index, which measures the buck’s performance against a basket of its peers, advances 0.43%, sitting at 96.45, clinging to the 96.40 threshold. Further, rising US Treasury yields benefit the greenback. The 10-year benchmark note rate is up to five basis points, up to 1.593%, thus boosting the USD against the Japanese yen.

In the daily chart, the USD/JPY depicts an upside bias. The daily moving averages (DMA’s) reside below the spot price, though approaching an interest level around the 114.70-115.00 area, unsuccessfully broken three times. However, a daily break above the 115.00 figure would open the door for further gains. The first resistance would be December 2016 swing highs around 118.66.

On the flip side, the first support would be the November 19 high at 114.53. A break under that level would expose 114.00, followed by the November 19 low at 113.58.

USDJPY Near Multi-Year Top

Nov 23 2021