USD/JPY – above 113.00, stiff resistance at 113.42

Weekly chart

weekly usdjpy.jpg

113.42 is a symmetrical resistance. Strong US ISM manufacturing today and on-manufacturing later this week could easily result in a more sustained break above 113.42 hurdle.

Symmetrical triangle is a bullish continuation pattern, so a weekly close above 113.42 would signal continuation of the rally from the recent low of 108.13.

Treasury yield curve steepened last week and continues today as well. The 10-year yield is up 1.4 basis points, while the 30-year yield has added 1.2 bps. Short duration yields are trading flat lined…let us hope the technical correction in oil is translated into a sustainable rally….

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