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- US Dollar extends gains during the American session, after a brief pause.
- USD/JPY boosted by yields and higher equity prices.
The USD/JPY continues to rise and broke above May highs at 110.20 and climbed to 110.29, reaching the highest level since early April. The pair remains near the top, as the US dollar prints fresh highs against most of its rivals.
The rally of USD/JPY started after the release of the ADP reports and was later reinforced by jobless claims data and the ISM service sector report. The better-than-expected numbers bode well for Friday’s official employment report.
Wall Street is having a volatile session. Main indices trimmed losses and the Dow Jones turned positive as it gains 0.08%; at the same time, the Nasdaq drops by 0.95%. The 10-year yield is up by almost 2%, near 1.62%.
Short-term levels
If USD/JPY keeps rising, the next resistance is seen at 110.50, followed by 110.75, and emergences the YDT high at 110.95. A pullback below 110.20 would alleviate the bullish pressure. Still, a daily close above 109.90 would improve the outlook for the greenback. Some overbought readings warn about the odds of more gains for the greenback.
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