USD/JPY has room to extend its gains to new 2021 highs

USD/JPY trades just shy of the 107.00 level as the dollar’s bullish potential is intact, Valeria Bednarik, Chief Analyst at FXStreet, reports.

Key quotes

“US Treasury yields remain stable, with the yield on the benchmark 10-year note around 1.43%. Investors paused ahead of definitions on the upcoming US stimulus package and first-tier event scheduled later this week.”

“Japan published the January Unemployment rate, which remained at 2.9% against expectations of an uptick to 3%. The February Monetary Base was up 19.6%, missing the 20.1% forecast.”

“Another leg higher seems likely on a clear break above 106.95, the immediate resistance level.”