5 Aug 2015
USD/JPY stays flat even though Treasury yields rise
FXStreet (Mumbai) - The USD/JPY spot continues to trade in the sideways manner around 124.40 showcasing remarkable resilience since Monday to the movement in the Treasury yields.
Long-term treasury yields rise
The benchmark 10-year treasury yield in the US now trades almost 4 basis points higher at 2.25%. The 30-yr yield is up 3 basis points at 2.919%. Still, the USD/JPY, which usually moves in tandem with the treasury yields, remains restricted around 124.40. Meanwhile, the 2-year yield, which mimics rate hike expectations, is up one basis points at 0.74%.
Moreover, the pair has been restricted largely in the range of 123.60-124.50 since Thursday despite the flattening of the yield curve and the resulting sharp moves in other major currencies.
Ahead in the day, the spot could be influenced by the US ADP employment data, which is expected to show 210k growth in private sector jobs in July. The ISM non-manufacturing, is also due, which is seen rising to 56.2 in July from 56.00 in June.
USD/JPY Technical Levels
The immediate resistance is located at 124.58 (July 30 high), above which the spot could target 125.00 levels. On the other hand, support is seen at 123.60 (50-DMA) and 123.01 (July 27 low).
Long-term treasury yields rise
The benchmark 10-year treasury yield in the US now trades almost 4 basis points higher at 2.25%. The 30-yr yield is up 3 basis points at 2.919%. Still, the USD/JPY, which usually moves in tandem with the treasury yields, remains restricted around 124.40. Meanwhile, the 2-year yield, which mimics rate hike expectations, is up one basis points at 0.74%.
Moreover, the pair has been restricted largely in the range of 123.60-124.50 since Thursday despite the flattening of the yield curve and the resulting sharp moves in other major currencies.
Ahead in the day, the spot could be influenced by the US ADP employment data, which is expected to show 210k growth in private sector jobs in July. The ISM non-manufacturing, is also due, which is seen rising to 56.2 in July from 56.00 in June.
USD/JPY Technical Levels
The immediate resistance is located at 124.58 (July 30 high), above which the spot could target 125.00 levels. On the other hand, support is seen at 123.60 (50-DMA) and 123.01 (July 27 low).