13 Feb 2015
USD/JPY struggles to extend gains
FXStreet (Mumbai) - The USD/JPY pair appears stuck around 118.90 levels despite the slight recovery seen in the US Treasury yields and a positive action in the European equities and the US index futures. However, the pair trades above the 50-DMA located at 118.75 levels.
Yen resilient to recovery in the Treasury yields
The 10-year Treasury yield in the US has recovered from the low of 1.976% to trade 1.8 basis points higher for the day at 2.004%. Despite the uptick in the Treasury yields, the USD/JPY pair struggled to rise to 119.00 levels.
Furthermore, the Japanese Yen is showing resilience amid the positive action in the European equities. The major European indices – Dax, Ftse – are up by half a percentage point each. A better-than-expected German Q4 2014 GDP data also failed to trigger a sharp weakness in the safe-haven Yen. Consequently, the pair risks falling back to the day’s low if the equity markets erase gains to trade lower.
USD/JPY Technical Levels
The immediate resistance is seen at 119.20, above which gains could be extended to 119.68 levels. On the flip side, a break below 118.81, could push the pair down to 118.40 levels.
Yen resilient to recovery in the Treasury yields
The 10-year Treasury yield in the US has recovered from the low of 1.976% to trade 1.8 basis points higher for the day at 2.004%. Despite the uptick in the Treasury yields, the USD/JPY pair struggled to rise to 119.00 levels.
Furthermore, the Japanese Yen is showing resilience amid the positive action in the European equities. The major European indices – Dax, Ftse – are up by half a percentage point each. A better-than-expected German Q4 2014 GDP data also failed to trigger a sharp weakness in the safe-haven Yen. Consequently, the pair risks falling back to the day’s low if the equity markets erase gains to trade lower.
USD/JPY Technical Levels
The immediate resistance is seen at 119.20, above which gains could be extended to 119.68 levels. On the flip side, a break below 118.81, could push the pair down to 118.40 levels.