USD/JPY trades to highest levels since 10 December and eyes a break above its 100-day moving average
The pair continues to track higher on a break above key trendline resistance levels this week, with the latest push moving above 104.50 as buyers look to break away from the downtrend in the pair since late March last year.
Of note, we are seeing price climb above its 100-day moving average (red line) @ 104.40 and a close above that would be the first since June last year.
A firm upside break may solidify a push towards 105.00 next with the 200-day moving average (blue line) @ 105.62 being a key potential target as well.
From a technical perspective, things are aligning for buyers but the overall situation remains tricky from a fundamental point of view.
US 10-year Treasury yields climbed higher yesterday, bouncing off 1% but any meaningful boost in yields is unlikely to come by as the reflation narrative takes a breather.
That said, it is also tough to ignore the technical implications when trading and that might still allude to a temporary breakout to the topside moving forward.
