29 Apr 2015
USD/JPY rises as the US 10-year yield flirts with 2%
FXStreet (Mumbai) - The bid tone on the US dollar got more pronounced, taking the USD/JPY pair higher to 119.17 levels as the 10-year Treasury yield rose back to 2%.
USD/JPY trades above 5-DMA
The pair rose above its 5-DMA located at USD 118.97 as the US 10-year Treasury yield rose almost three basis points to a high of 2.003%. The yields have hardened surprisingly ahead of the FOMC statement, since investors believe the Fed could delay rate hike to late 2015 or early 2016.
Moreover, the rise in the USD/JPY contradicts the weakness ion the USD against the GBP and the EUR. Ahead in the day, the US first quarter GDP could influence the pair. However, the major focus is likely to be on the US FOMC policy statement.
USD/JPY Technical Levels
The immediate resistance is located at 119.19 (100-DMA), above which gains could be extended to 119.894 (50-DMA). On the flip side, a break below 118.97 (5-DMA), under which the pair could drop to the daily low of 118.74.
USD/JPY trades above 5-DMA
The pair rose above its 5-DMA located at USD 118.97 as the US 10-year Treasury yield rose almost three basis points to a high of 2.003%. The yields have hardened surprisingly ahead of the FOMC statement, since investors believe the Fed could delay rate hike to late 2015 or early 2016.
Moreover, the rise in the USD/JPY contradicts the weakness ion the USD against the GBP and the EUR. Ahead in the day, the US first quarter GDP could influence the pair. However, the major focus is likely to be on the US FOMC policy statement.
USD/JPY Technical Levels
The immediate resistance is located at 119.19 (100-DMA), above which gains could be extended to 119.894 (50-DMA). On the flip side, a break below 118.97 (5-DMA), under which the pair could drop to the daily low of 118.74.