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27 Mar 2015
USD/JPY pares gains as Treasury yields slide
FXStreet (Mumbai) - The USD/JPY pared gains after having tested the 50-DMA located at 119.47, tracking the weakness in the US Treasury yields.
Falling yields cap gains in the USD
The yields on the short-end and long-end of Treasuries weakened, which capped gains in the USD. The 10-year yield in the US fell 3 basis points (bps) to 1.979%, while the 30-year yield in the US declined 3.1 bps to 2.569%. Consequently, the USD/JPY pair eased from a high of 119.47 to trade at the current level of 119.34
The Japanese Yen could recover losses in case the major European markets resume the fall, which would also push the Treasury yields lower.
USD/JPY Technical Levels
The immediate resistance is seen at 119.47 (50-DMA), above which gains could be extended to 119.71. On the flip side, a break below 119.18, could drive the pair lower to 118.90 levels.
Falling yields cap gains in the USD
The yields on the short-end and long-end of Treasuries weakened, which capped gains in the USD. The 10-year yield in the US fell 3 basis points (bps) to 1.979%, while the 30-year yield in the US declined 3.1 bps to 2.569%. Consequently, the USD/JPY pair eased from a high of 119.47 to trade at the current level of 119.34
The Japanese Yen could recover losses in case the major European markets resume the fall, which would also push the Treasury yields lower.
USD/JPY Technical Levels
The immediate resistance is seen at 119.47 (50-DMA), above which gains could be extended to 119.71. On the flip side, a break below 119.18, could drive the pair lower to 118.90 levels.