10 Mar 2015
USD/JPY stuck around 121.75
FXStreet (Mumbai) - USD/JPY retreats from new cycle highs above 122 levels in the European session and steadies around 121.75 levels as the USD bulls consolidate gains amid a slight weakness in treasury yields.
USD/JPY back below 122 levels
Currently, the USD/JPY trades higher by 0.50% at 121.73 levels, retracing from fresh eight year highs posted at 122.03 earlier in Asian trading. USD/JPY extends its consolidation phase in the European session below 122 barrier as the US dollar took a breather in its rally and hovered around 12-year highs. The US dollar index which measures the relative strength of the greenback against a basket of six major currencies, backed-off from fresh twelve year highs at 98.18 levels, and now trades at 98.06 levels recording a 0.44% gain on the day.
Moreover, minor weakness seen in 10-year treasury yields which is trading at 2.190%, down -0.24% also dragged USS off multi-year highs, shedding partial gains in USD/JPY.
According to CFTC and Rabobank research, long USD positions maintained a consolidative tone ahead of last week’s US February payrolls report. Longs are off their recent highs but are still at very elevated levels, while Net JPY shorts edged higher for the first time in seven weeks.
USD/JPY Technical Levels
To the upside, the next resistance is located at 122.57 (Feb 2007 High) levels and above which it could extend gains 123 (July 2007) levels. To the downside immediate support might be located at 120.96 (5-DMA) levels, below that at 120.37 (10-DMA) levels.
USD/JPY back below 122 levels
Currently, the USD/JPY trades higher by 0.50% at 121.73 levels, retracing from fresh eight year highs posted at 122.03 earlier in Asian trading. USD/JPY extends its consolidation phase in the European session below 122 barrier as the US dollar took a breather in its rally and hovered around 12-year highs. The US dollar index which measures the relative strength of the greenback against a basket of six major currencies, backed-off from fresh twelve year highs at 98.18 levels, and now trades at 98.06 levels recording a 0.44% gain on the day.
Moreover, minor weakness seen in 10-year treasury yields which is trading at 2.190%, down -0.24% also dragged USS off multi-year highs, shedding partial gains in USD/JPY.
According to CFTC and Rabobank research, long USD positions maintained a consolidative tone ahead of last week’s US February payrolls report. Longs are off their recent highs but are still at very elevated levels, while Net JPY shorts edged higher for the first time in seven weeks.
USD/JPY Technical Levels
To the upside, the next resistance is located at 122.57 (Feb 2007 High) levels and above which it could extend gains 123 (July 2007) levels. To the downside immediate support might be located at 120.96 (5-DMA) levels, below that at 120.37 (10-DMA) levels.