US yields at highs and so is the USDJPY

US yields are trading at fresh highs, with the 10-year yield up 7.0 basis points today to 4.395%. This marks a 24-basis-point gain for the week, the largest 1-week jump since mid-January 2024.

The rising yields have fueled a strong rally in the USDJPY, which continues to track higher.

Key Technical Levels and Price Action

• USDJPY Breakout:

  • The pair has moved above the 61.8% retracement level of the November high to December low, which sits at 153.647.
  • The price reached a high of 153.79 today, with nearby resistance at:
    • 153.88 (minor resistance)
    • 154.00 (psychological/natural resistance).

• Intraday Price Movement:

  • Earlier, the price rise stalled at the 61.8% retracement level, attracting resistance sellers.
  • The subsequent correction found support within a key swing area between 153.26 and 153.459, with the low holding at 153.255.
  • This support held firm, providing buyers the confidence to push higher.

Summary and Outlook

• Upside Targets:
  • 153.88 and 154.00 are the next resistance levels to watch for a potential continuation of the bullish move.
• Downside Risks:
  • A break below the 153.26–153.459 swing area could signal a deeper retracement, challenging bullish momentum.

With US yields continuing their climb, the USDJPY remains poised for further gains unless key support levels are breached. Buyers remain in control for now, but the psychological 154.00 level will be a critical test.

This article was written by Greg Michalowski at www.forexlive.com.