4 Aug 2015
USD/JPY better bid above 124 as treasury yields rebound
FXStreet (Mumbai) - The US dollar is posting modest gains versus the Japanese currency in the mid-Asian session, now pushing USD/JPY to fresh session highs above 124 barrier, as the greenback stages a minor recovery on the back of rebounding treasury yields after the recent weakness.
USD/JPY faces stiff resistance around 124.30-124.50 levels
Currently, the USD/JPY pair trades modestly flat at fresh session highs of 124.10, struggling to resist 124 handle. USD/JPY edged slightly higher in Asia, erasing a part of yesterday’s losses following a poor show displayed US factories with ISM manufacturing PMI easing to 52.7 in July from 53.5 results booked in June, which was the highest reading since January.
Moreover, USD/JPY kept green as the USD bulls now receive support from the recovery seen in the shorter and longer duration treasury yields which reflects that bets for Sept fed rate-hike remains intact. The 2-yr and 10-yr yields on the US notes stand at 0.677% (+1.73%) and 2.157% (+0.30%) respectively.
Later in the day, the USD/JPY pair could be influenced by factory orders data from the US. Moving on, we have a crucial week ahead in terms of key US economic releases while BOJ’s monetary policy statement will also remain in focus.
USD/JPY Technical Levels
To the upside, the next resistance is located 124.30 (Aug 3 High) levels and above which it could extend gains 124.50 (July 21 High) levels. To the downside immediate support might be located at 123.73 (July 21 Low) below that at 123.50 (July 31 Low) levels.
USD/JPY faces stiff resistance around 124.30-124.50 levels
Currently, the USD/JPY pair trades modestly flat at fresh session highs of 124.10, struggling to resist 124 handle. USD/JPY edged slightly higher in Asia, erasing a part of yesterday’s losses following a poor show displayed US factories with ISM manufacturing PMI easing to 52.7 in July from 53.5 results booked in June, which was the highest reading since January.
Moreover, USD/JPY kept green as the USD bulls now receive support from the recovery seen in the shorter and longer duration treasury yields which reflects that bets for Sept fed rate-hike remains intact. The 2-yr and 10-yr yields on the US notes stand at 0.677% (+1.73%) and 2.157% (+0.30%) respectively.
Later in the day, the USD/JPY pair could be influenced by factory orders data from the US. Moving on, we have a crucial week ahead in terms of key US economic releases while BOJ’s monetary policy statement will also remain in focus.
USD/JPY Technical Levels
To the upside, the next resistance is located 124.30 (Aug 3 High) levels and above which it could extend gains 124.50 (July 21 High) levels. To the downside immediate support might be located at 123.73 (July 21 Low) below that at 123.50 (July 31 Low) levels.