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15 May 2015
USD/JPY steadies at 119.50
FXStreet (Mumbai) - The USD/JPY pair has steadied itself around 119.50 levels, as further gains are being capped by weakness in the long-end treasury yields.
USD makes a comeback
The greenback is recovering across the board, which helped the USD/JPY rise from the low of 119.16 to trade currently at 119.45 levels. The recovery in the greenback is seen despite the 4 basis point drop in the 10-year treasury yield to 2.20%. Moreover, the correlation between the long-end treasury yields and the USD/JPY pair has weakened off-late. Still, the drop in the yields could have reduced the appeal of the USD, thereby capping the gains around its 5-DMA at 119.55.
USD/JPY Technical Levels
The immediate resistance is located at 119.55 (5-DMA), above which gains could be extended to 120.26 (May 12 high). On the flip side, a break below 119.38 (100-DMA) could push the pair down to the previous session’s low of 118.87.
USD makes a comeback
The greenback is recovering across the board, which helped the USD/JPY rise from the low of 119.16 to trade currently at 119.45 levels. The recovery in the greenback is seen despite the 4 basis point drop in the 10-year treasury yield to 2.20%. Moreover, the correlation between the long-end treasury yields and the USD/JPY pair has weakened off-late. Still, the drop in the yields could have reduced the appeal of the USD, thereby capping the gains around its 5-DMA at 119.55.
USD/JPY Technical Levels
The immediate resistance is located at 119.55 (5-DMA), above which gains could be extended to 120.26 (May 12 high). On the flip side, a break below 119.38 (100-DMA) could push the pair down to the previous session’s low of 118.87.