The USD/JPY pair caught some strong bids on Tuesday and jumped back above the 107.00 handle, above previous session’s wing high. Read on and see how the Chinese President, Xi Jinping’s comments on Tuesday have impacted the pair in this 10 April USDJPY Technical Outlook.
10 April, GKFX – The pair stalled its post-NFP retracement slide from mid-107.00s and has been finding some decent support near the 106.60 area. Chinese President Xi Jinping’s comments on Tuesday eased jitters over an escalating US-China trade dispute and prompted some fresh risk-on trade, eventually weighed on the Japanese Yen’s safe-haven appeal.
USD demand/US bond yields provide an additional boost
This coupled with a modest US Dollar rebound, further supported by a goodish pickup in the US Treasury bond yields, provided an additional boost and lifted the pair to an intraday high level 107.25.
The pair has now moved back within striking distance of over 1-month tops, set last week, as traders now look forward to the release of latest US PPI print, due later during the early NA session, for some fresh impetus.
10 April USDJPY Technical Outlook
Immediate resistance is pegged near the 107.40-50 region, above which the pair seems all set to aim towards reclaiming the 108.00 handle with some intermediate resistance near 107.80 level.
On the flip side, weakness back below the 107.00 handle might continue to find some support near the 106.60 region, which if broken might accelerate the slide back towards 106.20 level en-route the 106.00 handle.
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