USD/JPY hits fresh 5-month highs

A stronger US dollar in the market pushed USD/JPY to fresh 5-month highs. The pair climbed to 111.36, reaching levels last seen late in May.  It was trading near the highs, on its way to the third daily gain in a row and the tenth out of the last 12 trading days. 

While USD/JPY holds above 111.10, the Dow Jones is up 0.36% and the Nasdaq 0.72%, both headed toward a record close. US bond yields are up again, after falling during most of the day. The 10-year is at 2.335%. 

The US dollar is mostly lower in the market, the DXY is falling 0.27% but trimmed losses during the American session. The yen is the worst performer among majors. 

USD/JPY technical outlook

“The pair is clearly bullish and not far from May´s high of 111.44, the immediate resistance and the level to break to support an upward extension towards the 114.00 region”, said Valeria Bednarik, Chief Analyst at FXStreet. 

In the short-term, according to Bednarik, the 1-hour chart shows technical indicators bouncing from their mid-lines, “with the RSI indicator heading north around 64 and the price well above its moving averages, all of which supports some further gains for this Tuesday.”

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