USD/JPY tracks the recovery in T-yields, back above 109.50

The bulls are fighting hard to extend control into early Europe, taking the recovery in USD/JPY pair above the mid-point of 109 handle.

USD/JPY rescued by risk reset

The spot is on a steady recovery path so far this Wednesday, with the renewed upside gaining momentum over the last hour, as risk sentiment recovers on the back of a recovery in oil prices and treasury yields.

The major closely tracked the price-action seen in the US yields a day before, as the treasury yields plummeting across the curve amid increased safe-haven demand for the treasuries, in the wake of Mid-East tensions, UK election and Comey testimony.

Meanwhile, attention now turns towards the Japanese GDP report and Chinese trade balance data for fresh impetus on the prices, as the US calendar today remains absolutely data-empty. Also, sentiment on the European and US stock markets could influence the pair ahead of the ‘Super Thursday’.  

USD/JPY Technical levels                 

Omkar Godbole, Analyst at FXStreet offers technical levels for the spot: “Support: 109.23, 108.97 (76.4% Fib ext. of May 11 high - May 18 low - May 24 high), 108.93 (weekly 50-MA), 108.13 (April low). Resistance: 109.59 (Apr 24 low), 109.93 (50% Fib R of Trump rally), 110.235 (May 18 low), 110.75 (weekly 200-MA).”