USD/JPY trims gains as treasury yields drop

USD/JPY pair is losing height, now trading just below 102.00 handle as safe haven demand for treasuries is pushing the yields lower.

Rejected at 102.48

Fear of Bank of Japan intervention saw the pair clock a high of 102.48 in early Asia. However, post Brexit risk aversion continued in Asia, pushing the treasury prices higher (yields lower).

Consequently, Yen demand made a comeback, especially after the UK’s FTSE futures opened at least 2% lower. The pair remains at the mercy of the broader market sentiment in the remaining part of the Asian session and throughout the European session. Later in the day, US data releases could influence the pair.

USD/JPY Technical Levels

The immediate hurdle is seen at 103.73 (hourly 50-MA), which if breached shall open the doors for 103.95 (5-DMA) and 104.41 (10-DMA). On the lower side, support is seen at 101.50 (Asian session low). A violation there would expose 100.71 (50% of Oct 2011 low - Jun 2015 high), breach of which could see the pair re-test 100 levels.