USD/JPY hits fresh 1-week highs but fails to break above 111.00
Friday, 29 March 2019 · *Higher US yields support US dollar gains versus the yen. *
· *US economic data showed mixed numbers.*
The USD/JPY pair is rising on Friday for the second day in-a-row supported by higher US yields and an improvement in risk appetite. Gains are limited so far with the US dollar unable to break above 111.00.
The greenback is posting mix results across the board. It is rising against major European currencies that accelerated to the downside, following the vote against PM May Brexit deal at the UK Parliament. While at the same time is posting losses versus the majority of Emerging market currencies, although during the last hour it gained momentum.
The improvement today in risk sentiment weakened the yen. Equity prices in Wall Street are up 0.50% on average, while European markets are about to close with gains between 0.25% and 0.90%. US yields are another factor against the Japanese currency today. The 10-year is up for the second consecutive day, holding above 2.40%.
Data from the US released today showed mix numbers. Inflations numbers from the personal spending report came below expectation while later, new home sales numbers surpass market consensus. Also, the Consumer Sentiment index from the University of Michigan surprised with a positive revision to 98.4, the highest in 4 months.
*USD/JPY - Short-term levels to watch *
The pair peaked at 110.93, the highest level since March 20 and as of writing trades at 110.70. To the upside, the immediate resistance is seen at 110.95/111.00, followed by 111.20 and 111.45. On the flip side, support might be located at 110.50 (daily low), 110.15/20 and 109.90.