USD/JPY jumps above 118.00 as treasury yields rise

Having rebounded from the 1-hr 200-MA in the overnight trade, the Dollar-Yen pair moved above 118.00 levels.

Bullish 1-hr 50-MA and 200-DMA crossover

The hourly chart shows a golden cross - bullish crossover between 50-MA and 200-DMA. The bullish technical development is also accompanied by a moderate rise in the treasury yields.

At the time of writing, the 10-year treasury yield was up 2.2 basis points at 2.476%. Thus, the bid tone around the US dollar strengthened, pushing the USD/JPY to an intraday high of 118.18 levels.

The spot clocked a high of 118.61 on Tuesday before shedding almost 100 pips by the day end closing despite strong US manufacturing data.

USD/JPY Technical Levels

The pair was last seen trading around 118.14 levels. A break above 118.35 (hourly chart resistance) could yield a re-test of Tuesday’s high of 118.61, beyond which the psychological level of 119.00 could be put to test. On the lower side, failure to hold above 118.00 (zero figure) would expose rising trend line support on the hourly chart seen at 117.67, under which a major support is seen directly at 117.25 (hourly 200-MA).