16 Jan 2015
USD/JPY gains as Treasury yield recover losses
FXStreet (Mumbai) - The USD/JPY pair has gained strength at the onset of the European session, tracking the recovery in the Treasury yields.
The pair now trades 0.51% higher at 116.73 levels, compared to the previous session’s close at 116.13. The recovered from the low of 115.86 hit earlier today, as the 10-year treasury yields hit a low of 1.704%. However, the yield has recovered to trade at 1.739%, thereby pulling up the USD/JPY pair. Overall the yield is still down 3.4 basis points for the day. Further gains in the USD/JPY pair may be capped if the European equities weaken in line with their Asian peers.
USD/JPY Technical Levels
The immediate resistance is seen at 116.87 (hourly 50-SMA), above which gains could be extended to 117.23 levels. Meanwhile, support is seen at 116.40 and 116.05 levels.
The pair now trades 0.51% higher at 116.73 levels, compared to the previous session’s close at 116.13. The recovered from the low of 115.86 hit earlier today, as the 10-year treasury yields hit a low of 1.704%. However, the yield has recovered to trade at 1.739%, thereby pulling up the USD/JPY pair. Overall the yield is still down 3.4 basis points for the day. Further gains in the USD/JPY pair may be capped if the European equities weaken in line with their Asian peers.
USD/JPY Technical Levels
The immediate resistance is seen at 116.87 (hourly 50-SMA), above which gains could be extended to 117.23 levels. Meanwhile, support is seen at 116.40 and 116.05 levels.