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1 Apr 2015
USD/JPY struggles to extend gains above 120.00
FXStreet (Mumbai) - The USD/JPY pair is having a tough time extending gains above 120.00 levels, as the pair lacks support from the Treasury yields.
Rejected at technical resistance
The pair was rejected by the resistance at 120.25-120.35, after having failed at the same level in the previous session. Moreover, the weakness in the long duration treasury yields could be capping gains in the pair. The 10-year yield is down 1.6 basis points to 1.918%, while the 30-year yield fell 2.4 basis points to 2.519%. Consequently, the USD/JPY pair declined from a high of 120.31 to trade at 120.05 levels.
The pair could extend losses in case the Treasury yields fall further and the US equities extend losses see in the previous session.
USD/JPY Technical Levels
The immediate support is seen at 119.97 (hourly 50-MA), under which losses could be extended to 119.67 (hourly 200-MA). On the flip side, a break above 120.25-120.35 could drive the pair higher to 120.71 levels.
Rejected at technical resistance
The pair was rejected by the resistance at 120.25-120.35, after having failed at the same level in the previous session. Moreover, the weakness in the long duration treasury yields could be capping gains in the pair. The 10-year yield is down 1.6 basis points to 1.918%, while the 30-year yield fell 2.4 basis points to 2.519%. Consequently, the USD/JPY pair declined from a high of 120.31 to trade at 120.05 levels.
The pair could extend losses in case the Treasury yields fall further and the US equities extend losses see in the previous session.
USD/JPY Technical Levels
The immediate support is seen at 119.97 (hourly 50-MA), under which losses could be extended to 119.67 (hourly 200-MA). On the flip side, a break above 120.25-120.35 could drive the pair higher to 120.71 levels.