USD/JPY correlation with US yields in focus
USD/JPY pulls back from a fresh yearly high (137.91) to largely mirror the weakness in US Treasury yields.
The correlation coefficient with the 10-Year yield currently reads 0.91, with USD/JPY approximately 7% higher from the yearly low (127.23).
Long-Term Outlook
A key reversal took shape earlier this year as USD/JPY bounced back ahead of the May 2022 low (126.36).
The positive slope in the 200-Day SMA (137.47) indicates that the long-term outlook for USD/JPY is tilted to the upside.
Short-Term Outlook
USD/JPY may stage further attempts to test the December 2022 high (138.18) as long as it holds above the monthly low (135.26). Close above 137.70 (38.2% retracement) opens up the 143.10 (23.6% retracement) region.
However, failure to hold above the 200-Day SMA (137.47) could signal a near-term exhaustion as USD/JPY pulls back from a fresh yearly high (137.91). Move below the monthly low (135.26) may push USD/JPY towards 133.30 (50% retracement).
Additional Resources:
USD/JPY outlook mired by failure to test December high
The correlation coefficient with the 10-Year yield currently reads 0.91, with USD/JPY approximately 7% higher from the yearly low (127.23).
Long-Term Outlook
A key reversal took shape earlier this year as USD/JPY bounced back ahead of the May 2022 low (126.36).
The positive slope in the 200-Day SMA (137.47) indicates that the long-term outlook for USD/JPY is tilted to the upside.
Short-Term Outlook
USD/JPY may stage further attempts to test the December 2022 high (138.18) as long as it holds above the monthly low (135.26). Close above 137.70 (38.2% retracement) opens up the 143.10 (23.6% retracement) region.
However, failure to hold above the 200-Day SMA (137.47) could signal a near-term exhaustion as USD/JPY pulls back from a fresh yearly high (137.91). Move below the monthly low (135.26) may push USD/JPY towards 133.30 (50% retracement).
Additional Resources:
USD/JPY outlook mired by failure to test December high
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.