24 Mar 2015
USD/JPY: Falls to 50-DMA, what next?
FXStreet (Mumbai) - The USD/JPY pair continued to bleed slow and steady during the European session as it fell to the 50-DMA located at 119.37. The pair clocked a low of 119.28, before recovering slightly to its 50-DMA.
USD/JPY – What Next?
The pair weakened to its 50-DMA ahead of the data in the US, which could show the inflation rebounded on the monthly basis. However, year-on-year the prices are seen falling in February. The dip in the inflation could push the Treasury yields lower, thereby strengthening the Yen. The 10-year Treasury yield currently trades 1.2 basis points lower at 1.903%.
Meanwhile, a surprise rebound in the inflation figure, which is significantly higher than expected could push the Treasury yields higher, leading to a recovery in the USD/JPY pair.
USD/JPY Technical Levels
The immediate support is seen at the 100-DMA located at 119.20, under which the pair could drop to 118.61 levels. On the flip side, a break above 119.56 could see the pair re-test the 4-hour 200-MA located at 119.84 levels.
USD/JPY – What Next?
The pair weakened to its 50-DMA ahead of the data in the US, which could show the inflation rebounded on the monthly basis. However, year-on-year the prices are seen falling in February. The dip in the inflation could push the Treasury yields lower, thereby strengthening the Yen. The 10-year Treasury yield currently trades 1.2 basis points lower at 1.903%.
Meanwhile, a surprise rebound in the inflation figure, which is significantly higher than expected could push the Treasury yields higher, leading to a recovery in the USD/JPY pair.
USD/JPY Technical Levels
The immediate support is seen at the 100-DMA located at 119.20, under which the pair could drop to 118.61 levels. On the flip side, a break above 119.56 could see the pair re-test the 4-hour 200-MA located at 119.84 levels.