USD/JPY eyes 200-day moving average as dollar looks poised to extend upside momentum

Technical Analysis

Author: Justin Low | usdjpy

USD/JPY hits a fresh high of 105.27 on the day

USD/JPY D1 04-02
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The push above 105.00 is continuing for the pair as the dollar continues to see more of a tailwind this week with EUR/USD now cracking below 1.2000.

That puts buyers in a good spot now to move towards a potential test of the 200-day moving average (blue line) @ 105.58 next.

That will mark a key line in the sand for the pair as it hasn't traded above both its key daily moving averages since June last year - which owed to a brief break higher in Treasury yields from 0.70% to 0.95% before retracing back into range.

This time around, yields are staying supportive somewhat and the dollar is also gathering some added momentum from a technical perspective.

There is still some degree of skepticism to the break here but it is tough to fight the charts when things do play out in such a manner at times.

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