USD/JPY about to break above the 107.00 level

USD/JPY is trading at its daily high in the 106.95 price zone, bullish in the short-term and with room to break above 107.00 as the US Treasury yields momentum continues to underpin the pair, FXStreet’s Chief Analyst Valeria Bednarik briefs.

Key quotes

“Treasury yield are standing at one-month highs. In regards to macroeconomic data, Japan published the July Money Supply M2+CD, which increased to 7.9% YoY from 7.2% in the previous month. The US will release later today July CPI data.”

“The 4-hour chart shows that USD/JPY finally surpassed its 200 SMA, while the 20 SMA accelerated its advance above the 100 SMA, both below the larger one. Technical indicators, in the meantime, have reached overbought territory, partially losing their bullish strength but holding on to daily highs. 

“The USD/JPY pair has now room to test the 107.00 area, with a break above it anticipating another leg north.”