Sliding Treasury yields cap gains in the USD/JPY pair

FXStreet (Barcelona) - The weakness in the US Treasury yields is capping gains in the USD/JPY pair around 121.00 levels. The pair managed to clock a high of 121.11 earlier today when the yields were somewhat resilient. However, it dipped below 121.00 levels once the yields started weakening.

Treasury yields slide, Yen gains

The 10-year yield is trading 3.2 basis points (bps) lower at 2.208%, while the 30-year yield is trading at 3.8 bps lower at 2.801%. The weakness in the yields is restricting the USD/JPY around 121.00 levels.

However, the positive action in the US index futures, coupled with increased speculation of an early interest rate hike in the US post Friday’s jobs report could send yields and USD/JPY pair higher during the US session.

USD/JPY Technical Levels

The immediate resistance is seen at 121.26, above which the pair could rise to 121.83 levels. On the flip side, a break below 120.81, could send the pair down to 120.33 levels.

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