USD/JPY Is Bullish Near 110.00, Further Advances Likely In The Short-Term

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USD/JPY Current price: 109.76

• US President Joe Biden said to announce a $6 trillion budget.
• Higher government bond yields and rallying equities underpinned USD/JPY.
• USD/JPY is bullish near 110.00, further advances likely in the short-term.

The USD/JPY pair soared to 109.91, its highest in almost two months, underpinned by risk appetite combined with higher US government bond yields. The upbeat mood came on a revival of US spending. President Joe Biden was said to propose a $6 trillion budget, to invest in infrastructure, education, health care and more. Meanwhile, Senate Republicans unveiled a counteroffer of $928B infrastructure investment.

Japan will publish early on Friday, May Tokyo inflation figures, with the annual CPI foreseen at -0.8%, and the April Unemployment Rate, expected at 2.7%.

USD/JPY Short-Term Technical Outlook

The USD/JPY pair trades in the 109.70 price zone correcting overbought conditions. From a technical point of view, it has room to extend its advance. The 4-hour chart shows that technical indicators are correcting from extreme readings but remain in overbought levels. The 20 SMA has turned higher, but it is developing between directionless longer ones.

Support levels: 109.30 108.90 108.55

Resistance levels: 110.10 110.45 110.80

View Live Chart for the USD/JPY

Image Sourced from Pixabay

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.