26 May 2015
USD/JPY extended gains to 123.27
FXStreet (Mumbai) - The USD/JPY pair extended gains to hit a fresh eight year high of 123.27 as investors cheer solid US core durable goods figures coupled with upward revisions in previous month’s figures.
USD gains even though Treasury yields trade weak
The American dollar shot higher against the Japanese Yen, although we have not seen an uptick in the Treasury yields on the back of an encouraging durable goods report. The 10-year yield in the US continues to trade 3.7 basis points lower at 2.192%. The USD/JPY and the 10-year yield in the US are known to have a strong direct correlation.
Ahead in the day, the Treasury yields as well as the USD/JPY pair could be influenced by the report on the US services activity in April, New Home sales report and consumer confidence report.
USD/JPY Technical Levels
The pair currently trades at 123.08, with immediate support seen at the psychological level of 123.00, under which the pair could re-test 122.80-122.70 levels. On the other hand, the pair could rise further to 124.12 (June 2007 high) in case it manages to hold above 123.00 levels.
USD gains even though Treasury yields trade weak
The American dollar shot higher against the Japanese Yen, although we have not seen an uptick in the Treasury yields on the back of an encouraging durable goods report. The 10-year yield in the US continues to trade 3.7 basis points lower at 2.192%. The USD/JPY and the 10-year yield in the US are known to have a strong direct correlation.
Ahead in the day, the Treasury yields as well as the USD/JPY pair could be influenced by the report on the US services activity in April, New Home sales report and consumer confidence report.
USD/JPY Technical Levels
The pair currently trades at 123.08, with immediate support seen at the psychological level of 123.00, under which the pair could re-test 122.80-122.70 levels. On the other hand, the pair could rise further to 124.12 (June 2007 high) in case it manages to hold above 123.00 levels.