Back
28 Jul 2015
USD/JPY: Pressuring into key fib resistance
FXStreet (Mumbai) - The USD/JPY pair pressuring into resistance at 123.77 (61.8% Fib R of 125.851-1230.408), after having advanced from the low of 123.07, tracking the rise in the Treasury yields.
Equities stabilize, Yen tracks treasury yields
The stability in the equity markets across Europe pushed the safe haven treasury yields higher. Consequently, the USD/JPY pair, known to have a direct relationship with yields, moved higher as well. Positive action in the US equity futures also added to the upside momentum in the pair.
The spot now trades closer to 123.77, with the 10-year Treasury yield up 2.2 basis points at 2.25%. Whether or not the spot takes out the resistance at 1237.77 depends on the sentiment on the Wall Street and the US services PMI and consumer confidence data.
USD/JPY Technical Levels
The immediate resistance is located at 123.77. The spot could test 124.18 (July 23 high), in case of a break above 123.77. On the flip side, a break below 123.56 (July 22 low) could push the spot back to its 50-DMA at 123.29.
Equities stabilize, Yen tracks treasury yields
The stability in the equity markets across Europe pushed the safe haven treasury yields higher. Consequently, the USD/JPY pair, known to have a direct relationship with yields, moved higher as well. Positive action in the US equity futures also added to the upside momentum in the pair.
The spot now trades closer to 123.77, with the 10-year Treasury yield up 2.2 basis points at 2.25%. Whether or not the spot takes out the resistance at 1237.77 depends on the sentiment on the Wall Street and the US services PMI and consumer confidence data.
USD/JPY Technical Levels
The immediate resistance is located at 123.77. The spot could test 124.18 (July 23 high), in case of a break above 123.77. On the flip side, a break below 123.56 (July 22 low) could push the spot back to its 50-DMA at 123.29.