USD/JPY rises above 100-DMA ahead of the FOMC statement

FXStreet (Mumbai) - The American dollar is making a comeback ahead of the US GDP report and FOMC statement on the back of a rise in the Treasury yield. The USD/JPY pair rose above its 100-DMA located at 119.19.

Dollar rises as treasury yields harden

The Treasury yields rose to a one-month high on Wednesday, with the 10-year yield rising to a high of 2.01%. Moreover, the yields have hardened ahead of the US first quarter GDP report, which is expected to show growth slowed down, while the FOMC statement due for release later today is expected to sound dovish. Though uptick in the yields pushed the USD/JPY to an intraday high of 119.34 levels.

USD/JPY Technical Levels

The immediate resistance is located at 119.42, above which gains could be extended to 119.895 (50-DMA0. On the flip side, a failure to sustain above its 100-DMA at 119.19 could push the pair down to its daily low of 118.74.

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