What’s next? – USDJPY 24.04.18

The dollar was trading 0.08 percent higher vs the Japanese yen at 108.79 as of 07:20 GMT on Tuesday, amid a continuous strengthening of the dollar on the back of higher US bond yields.

The benchmark 10-Year US Treasury yield moved closer to three percent in the previous session, boosting demand for the greenback, which traded near to an eight-week high.

In the previous session, the pair broke above 108.00 and rose more than one percent to hold in green territory. The daily high was found at 108.73 and its low at 107.66.

The US dollar index, which gauges the greenback against six major competitors, was trading 0.63 percent higher at 90.64 by the time of this writing.

Market players also observed the US-China trade conflict, in which there hasn’t been major developments, rising expectations that both nations will find a peaceful solution.

The news front was also nurtured by prospects of positive talks between US President Donald Trump and the North Korean leader Kim Jong-un scheduled for this upcoming weekend.

Pyongyang has suspended their nuclear and ballistic missile tests until the meeting between leaders is concluded. Investors are hoping for a positive outcome, which could weigh on gold.

On the data front, the US manufacturing and services PMIs for April outperformed expectations at 56.5 and 54.4 respectively. Existing home sales grew 1.1 percent in March to 5.6 million units.

Ahead in today’s session, the S&P/CS HPI composite for February is up at 13:00 GMT, followed by CB consumer confidence for April and new home sales for March at 14:00 GMT.

Some market analysts said the fifty percent retracement at 108.98 and the top of the cloud at 109.32 are the next upside targets for the pair.

FortFS