USD rises during the American session to end on strong note

The US dollar gained momentum on American trading hours and climbed toward fresh highs, rising particularity versus the Japanese yen. Greenback is about to end with gains in the market, supported by higher US bond yields and despite US economic data. 

In the bond market, the US 10-year yield climbed to 1.845%, the highest level since May while the 30-year reached 2.60% for the first time since early June.  

Regarding data, the durable goods orders contracted by 0.1% in September versus a growth of 0.1% expected and 0.3% recorded in the previous month; Initial jobless claims fell to 258K, above the 255K expected (still showing a solid labor market), pending home sales rose 1.5% in September (vs 1.2% expected), recovering after a 2.5% decline of the previous month. 

The US dollar index moved around 98.55 during most of the day and during the American session broke to the upside and climbed to 98.95. It pulled back modestly and it was about to end the day around 98.80/85, headed toward the highest close since February. Greenback rose particularly against the yen pushing USD/JPY above 105.00; that rally weakened the Japanese currency in the market. 

DXY Technical levels 

To the upside, the 99.00 is the immediate resistance level, followed by 99.30/35 (Jan 12, 13 & 14 high). On the downside, support might lie at 98.45 (daily low), 98.25 (Oct 21 & 26 low) and 98.10 (Oct 13, 14 & 17 high) and 97.45 (20-day moving average).