FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the USD/JPY pair advanced up to 120.65 this Monday, helped by rising US yields.
Key Quotes:
"The 10y note yield surged up to 2.21%, as treasuries came under pressure following FED officials' remarks on a close call to raise rates last week, and therefore opening doors for a hike before the year end."
"The pair however, was unable to extend its advance, as US stocks gave back month of its intraday gains, but held near its high. The 1 hour chart shows that the price has advanced above its 100 and 200 SMAs that anyway are flat, whilst the technical indicators are losing their upward strength near overbought territory."
"In the 4 hours chart, the technical picture is neutral, as the technical indicators remain horizontal around their mid-lines. The immediate support comes at 120.35, the 50% retracement of the latest weekly bearish run, whilst the 61.8% retracement of the same rally stands 100 pips higher, at 121.35 and has been attracting selling interest since late August, with a clear break above it required to confirm a stronger advance."
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