USD/JPY: testing overnight highs at 112.93

Currently, USD/JPY is trading at 112.85, up 0.08% on the day, having posted a daily high at 112.89 and low at 112.72.

USD/JPY opened in Tokyo with a slight bid after a relatively quiet US session where U.S. stocks close higher on Wednesday, building on the recent streak of gains that took all of the benchmarks to record levels. 

Forex today: dollar was leaning against the 94.00-20 big pivot level

The US dollar was leaning against the 94.00-20 big pivot level while the US 10yr yields rose from 2.30% to 2.35% after some strong economic data in the ISM Services that was the strongest headline number since 2005. USD/JPY remained rangebound, between 112.30 and 112.95.

Positive data drove the price in NY with the ADP report that showed that the private sector added more jobs than expected in September. The services Markit PMIs and the official ISM readings beat the market's expectations as well and sent yields and the US dollar higher.

USD/JPY levels

Valeria Bednarik explained that the pair presents a neutral stance in the 4 hours chart, as it has been confined to a tight 110 pips' range ever since the week started. "In the mentioned chart, technical indicators have turned flat around their mid-lines, but the price remains above bullish moving averages, with the 100 SMA now around 111.85. The downside seems well-limited, but the pair would need to break above 113.25, last week's high to gain upward strength, with scope then to test the key long-term resistance area at 114.40," Valeria explained further.