FxWirePro: USD/JPY holds marginal gains, yields underpin greenback

Chart - Courtesy Trading View 

USD/JPY was trading 0.47% higher on the day at 130.46 at around 06:15 GMT.

The major is holding marginal gains and hovers around the 130 handle after closing 0.72% lower in the previous session.

US Treasury yields regain upside momentum amid hawkish Fed expectations, supporting the greenback.

Amid ongoing Russia-Ukraine crisis, fears of global economic slowdown and inflation boom, adds to the US dollar’s safe-haven demand. 

Focus now on US ISM Manufacturing PMI for April, expected at 58.0 versus 57.1 prior, for short-term directions.

Uncertainty ahead of the monetary policy announcement by the Federal Reserve on Wednesday keeps upside limited.

Technical bias for the pair remains bullish. Momentum with the bulls and volatility is high. Scope for further upside.

Major Support Levels: 

S1: 129.33 (5-DMA)

S2: 128.71 (200H MA)

Major Resistance Levels: 

R1: 131

R2: 131.29 (Upper BB)

Summary: USD/JPY starts the month on a bullish note. The major closed April month with 6.74% gains and is trading with a bullish bias. Scope for test of new multi-year highs.