6 Jan 2015
Treasury yields drag USD/JPY lower
FXStreet (Mumbai) - The USD/JPY pair was pushed to the 50-DMA level of 118.71 levels today by the weak treasury yields at the long-end of the market curve in the US.
The USD/JPY pair hit a low of 118.64 levels, before recovering to trade at 119.12 levels; down 0.43% for the day. The pair is known to have direct relation with the 10-year Treasury yields in the US, which slipped from 2.12% yesterday to the current rate of 2.02%. Consequently, the USD/JPY pair fell from 120.40 levels to 118.64 levels, partly aided by the risk aversion in the equity markets across the globe.
The pair may extend the fall if the treasury yields continue to slump on the safe haven demand arising out of rout in Crude prices, weak equities, and fears of ‘Grexit’.
USD/JPY Technical Levels
The pair has an immediate support located at 118.71 (50-DMA), under which losses could be extended to 118.00 levels. Meanwhile, resistance is seen at 119.24 and 119.84 (5-DMA) levels.
The USD/JPY pair hit a low of 118.64 levels, before recovering to trade at 119.12 levels; down 0.43% for the day. The pair is known to have direct relation with the 10-year Treasury yields in the US, which slipped from 2.12% yesterday to the current rate of 2.02%. Consequently, the USD/JPY pair fell from 120.40 levels to 118.64 levels, partly aided by the risk aversion in the equity markets across the globe.
The pair may extend the fall if the treasury yields continue to slump on the safe haven demand arising out of rout in Crude prices, weak equities, and fears of ‘Grexit’.
USD/JPY Technical Levels
The pair has an immediate support located at 118.71 (50-DMA), under which losses could be extended to 118.00 levels. Meanwhile, resistance is seen at 119.24 and 119.84 (5-DMA) levels.