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5 Jan 2015
USD/JPY back in the red
FXStreet (Mumbai) - The USD/JPY pair has erased gains to trade in the red, tracking weakness in the US Treasury yields.
The pair now trades 0.12% lower at 120.396, after having failed to sustain at the day’s high of 120.66. The USD weakened as the 10-year yield in the US weakened 1.6 basis points to 2.105%. Moreover, the yield has weakened from 2.3% hit on Dec. 24th, to trade at the current level of 2.105%. Consequently, the USD/JPY pair has been restricted around 120.50-120.7 levels since Dec. 24th.
Meanwhile, weakness in the US equity futures along with the bearish indications from the European equity index futures may lead to further weakness in the USD/JPY pair.
USD/JPY Technical levels
The pair has strong support located at 120.21 and 120.18 (10-DMA and 5-DMA), under which the pair could test 119.82 levels. Meanwhile, resistance is seen at 120.72 and 121.00 levels.
The pair now trades 0.12% lower at 120.396, after having failed to sustain at the day’s high of 120.66. The USD weakened as the 10-year yield in the US weakened 1.6 basis points to 2.105%. Moreover, the yield has weakened from 2.3% hit on Dec. 24th, to trade at the current level of 2.105%. Consequently, the USD/JPY pair has been restricted around 120.50-120.7 levels since Dec. 24th.
Meanwhile, weakness in the US equity futures along with the bearish indications from the European equity index futures may lead to further weakness in the USD/JPY pair.
USD/JPY Technical levels
The pair has strong support located at 120.21 and 120.18 (10-DMA and 5-DMA), under which the pair could test 119.82 levels. Meanwhile, resistance is seen at 120.72 and 121.00 levels.