USD/JPY losing altitude on soft risk?

• Risk-off on Wall Street and a soft tone in the Asian equities dragging USD/JPY lower.
• US 10-yr treasury yield holds above 2.4 percent, but sustained gains remain elusive, thus USD bulls struggle to keep the pair above 114.00.

The soft tone in the Asian equities is pushing the Japanese Yen higher. The USD/JPY pair currently trades around 113.44 levels, having clocked a high of 113.75 and low of 113.37.

The US 10-year treasury yield rose to a six-month high of 2.47 percent on Wednesday before falling back to 2.43 percent, largely due to 0.48 percent drop in the DJIA. The moderate risk-off seems to have hit the Asian shores as well. Australia's S&P/ASX 200 is down 0.14 percent, while Hong Kong's Hang Seng has shed 0.4 percent.

Consequently, the JPY has found some love, although it could be short lived if the 10-year treasury yield defends the former resistance turned support level of 2.4 percent.

USD/JPY Technical Levels

Jim Langlands from FX Charts writes-

With both the 1 & 4 hour charts still looking rather uninspired further choppy action looks possible although the dailies continue to pick up a more positive tone, and on the topside, back above 114.00, resistance will be seen at the session high of 114.25, above which there is not too much to stop the dollar heading towards 114.50 and beyond that, to the major descending trend resistance, currently at 115.05."

"On the downside, support will arrive at 113.47/50, the session low, and again at the 24 Oct low at 113.24. Below that, a test of 113.00 could be on the cards, beneath which would see us back in the previous 112/113 range. Minor support should arrive at 113.20/00 below which 112.80 (rising trend support) and Friday’s low of 112.50 should provide decent backup."