USD/JPY nears 102.00 handle as treasury yields drop

Moderate drop in the US treasury yields is keeping the US dollar on the back foot in Asia, thus, Dollar-Yen pair retreated to 102.01 levels.

Rejected at hourly 50-MA

Yesterday’s rebound from 101.36 (61.8% of 99.54-104.32) ran out of steam at the hourly 50-MA hurdle in late US session, following which the Yen buyers made a comeback and pushed the bird lower to near 102.00 levels.

The weekly loss is pretty much a done deal as the spot currently trades well below the weekly opening rate of 103.87. The data calendar in the US is light as well; hence there is little scope for a miraculous recovery to 103.87 levels.

As for now, the dollar is taking a back seat due to a moderate drop in the treasury yields.

USD/JPY Technical Levels

Break below 102.00 (zero figure) could yield a test of hourly 50-MA located at 101.79, under which the spot could target 101.36 (61.8% of 99.54-104.32). On the other hand, a break above 102.47 (hourly 100-MA) would open doors for a hourly 200-MA level of 102.81- 103.00 (zero figure).