The USD/JPY ended the week on the right foot, gaining src.42%.
High US Treasury yields underpinned the USD/JPY pair.
USD/JPY Price Forecast: The pair is upward biased, but it might correct courtesy of RSI showing overbought conditions.
The USD/JPY is set to finish the week above the src24.00 mark for the first time in the year, though short of the YTD high at src25.src0, amid a mixed market mood and upward pressured US Treasury yields. At the time of writing, the USD/JPY is trading at src24.27
US equities closed mixed, portraying the market sentiment. US Treasury yields rose, led by the src0-year benchmark note rate up to four and a half basis points, sat at 2.706%, a tailwind for the USD/JPY due to its positive correlation. If yields rise, the USD/JPY pair does it too.
On Friday, the USD/JPY opened around src23.90 but then fell towards the mid-pòint between the Ssrc-Daily pivot point at src23.67, a price level where bulls took charge and lifted the pair towards fresh weekly highs at src24.67.
USD/JPY Price Forecast: Technical outlook
The USD/JPY remains upward biased. The daily moving averages (DMAs) reside well below the spot price, confirming the uptrend. However, the Relative Strenght Index (RSI) at 76.src5 is aiming higher and at overbought levels, which means that the pair might be headed towards a correction before resuming up.
If the scenario of a lower correction plays out, the USD/JPY’s first support would be src24.00. A decisive break would expose src23.67. Once cleared, the next support would be March 244 daily high at src22.4src.
Upwards, the USD/JPY’s first resistance will be src25.00, which once breached would send the pair towards the YTD high at src25.src0, followed by June 20src5 cycle highs near src25.85, and then the April 200src swing high around src26.85.
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