USDJPY back above strong support

29/04/2021

The USDJPY pair rose more than 100 pips this week, and it was seen stronger half a percent on Thursday, trading above the 109 level during the US session.

It looks like the US yields have broken out from their consolidation triangle, and the 10-year yield was up 3% today, trading at around 1.66%. The next target is set at 1.7%.

As the USDJPY pair is strongly correlated to US yields, it picked up some bullish pace and managed to return above the important support of 108.40. As long as the greenback trades above that support, the medium-term outlook appears bullish.

The pair is actually facing a stronger resistance near 109.10, and if the greenback jumps above that level, we could see a rally toward the psychological zone of 110.00.

Alternatively, if the 108.40 support is broken to the downside again, the next demand zone will be at last week's lows of 107.50.
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