12 Jan 2015
Gains in USD/JPY capped by weakness in the Treasury yields
FXStreet (Mumbai) - The USD/JPY pair advanced today as markets continue to favor USD on expectations of a rate hike in the US, although gains have been capped by the weakness in the US Treasury yields.
The pair currently trades 0.35% higher at 118.88 levels, after having eased-off from the day’s high of 119.31. Moreover, the pair erased part of its gains as the 10-yr Treasury yields in the US declined 1 basis points to 1.959%. The yields have declined despite a better-than-expected US jobs data released on Friday.With no major data due of the US today, the pair is likely to remain well supported on the expectations of policy tightening in the US. However, further decline in the Treasury yields may play a spoilsport.
USD/JPY Technical Levels
The immediate resistance is seen at 119.03 (50-DMA), above which gains could be extended to 119.33 (10-DMA). Meanwhile, support is seen at 118.49 and 118.08 levels.
The pair currently trades 0.35% higher at 118.88 levels, after having eased-off from the day’s high of 119.31. Moreover, the pair erased part of its gains as the 10-yr Treasury yields in the US declined 1 basis points to 1.959%. The yields have declined despite a better-than-expected US jobs data released on Friday.With no major data due of the US today, the pair is likely to remain well supported on the expectations of policy tightening in the US. However, further decline in the Treasury yields may play a spoilsport.
USD/JPY Technical Levels
The immediate resistance is seen at 119.03 (50-DMA), above which gains could be extended to 119.33 (10-DMA). Meanwhile, support is seen at 118.49 and 118.08 levels.