7 Jan 2015
USD/JPY follows Treasury yields ahead of Fed minutes
FXStreet (Mumbai) - The USD/JPY pair is slowly rising towards the 5-DMA located at 119.68 levels, tracking the hardening of the 10-year Treasury yields in the US as markets brace up for the December Federal Reserve minutes.
The pair extended gains post the release of an upbeat December month ADP report to clock a high of 119.55 levels. Moreover, the Treasury yield curve has steepened, indicating relatively resilient yields at the long-end – 10yr and 30yr – of the treasury market curve. The USD/JPY is known to have a direct correlation to the yields at the long-end. Thus, the pair is slowly inching higher tracking the 10-yr treasury yield, which currently trades 3.2 basis points at 1.995%.
USD/JPY Technical Levels
The pair has an immediate resistance located at 119.65 (5-DMA) and 119.83 (10-DMA). Meanwhile, support is seen at 119.24, under which the pair could re-test 118.79 (50-DMA) levels.
The pair extended gains post the release of an upbeat December month ADP report to clock a high of 119.55 levels. Moreover, the Treasury yield curve has steepened, indicating relatively resilient yields at the long-end – 10yr and 30yr – of the treasury market curve. The USD/JPY is known to have a direct correlation to the yields at the long-end. Thus, the pair is slowly inching higher tracking the 10-yr treasury yield, which currently trades 3.2 basis points at 1.995%.
USD/JPY Technical Levels
The pair has an immediate resistance located at 119.65 (5-DMA) and 119.83 (10-DMA). Meanwhile, support is seen at 119.24, under which the pair could re-test 118.79 (50-DMA) levels.