FXStreet (Mumbai) – The bid tone on USD/JPY improved after the uptick in the wage pay pushed the 2-year treasury yield in the US to a session high.
USD/JPY: back above hourly 200-MA
The pair moved back above its hourly 200-MA located at 120.54 levels and ran into hourly 100-MA at 120.72. The currency pair got a boost after the upbeat US wage data for Q3 overshadowed the drop in the personal spending and pushed the 2-yr yield (tracks rate hike expectations) to a session high of 0.753%.
At the moment, the spot is trading around 120.65 levels. The next thing to watch out ahead of the weekend is Fed Williams’ speech in Washington and the Michigan confidence index.
USD/JPY Technical Levels
The immediate resistance is located at 120.72 (hourly 100-MA), above which the pair could test 120.83 (hourly 50-MA) and 121.00 levels. A break above would expose 121.50 area (Oct 23,26 high, daily high). On the other hand, a break below hourly 200-MA at 120.54 would expose 120.12 (50-DMA).
(Market News Provided by FXstreet)