USD/JPY: remains in bullish territory, taking on 107.20/50 bears

USD/JPY was trading at fresh highs and onto the 107 handle with a high of 107.43, but bears have capped here and we are back in a sideways consolidation of the bid in a slow start in Tokyo

USD/JPY is oscillating at 107.20 at time of writing after US equity indices were making fresh record highs overnight amid company earnings surprises. US yields and the US dollar were top performers. The Yen will remain on the backfoot as the dollar continues to garner strength and markets await Abnomics 2.0 to kick in.

Meanwhile, analysts at ANZ offered a global markets view as follows:

"Equities resumed their march higher, with positive earnings buoying risk sentiment. Treasuries weakened (the 10-year yield rose to 1.58%), oil yo-yoed, gold prices fell, the USD was mixed (up against JPY, down against GBP and flat against EUR), and credit spreads were marginally tighter. European equities were led higher by a 1.6% climb in DAX, after SAP and Volkswagen beat earnings estimates. Gains in the US were more modest, with S&P currently up 0.5%. Oil prices were volatile, but are up around 1% (WTI), while the CRB futures index is down 0.5%."

USD/JPY levels

"The USD/JPY pair is biased higher in the short term, as in the 1 hour chart, the price continues advancing above its 100 and 200 SMAs, which maintain bullish slopes," explained Valeria Bednarik, chief analyst at FXStreet. To the downside,106.80 is a key support ahead of 105.50. The 15th July lows at 104.60 challenges the ascending support of 13th July business.