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26 Feb 2015
USD/JPY struggles for direction along with Treasury yields
FXStreet (Mumbai) - The USD/JPY continues to hover around 118.90-119.00 levels without proper direction as the pair lacks clear indications from the US Treasury yields. The 10-year treasury yield is trading around 1.96%.
Fed to remain “patient”, still rate hike in 2015 is on the cards
The June rate hike is off the table, although the markets still believe that the Fed would raise interest rates in 2015. Thus, losses in the 10-year treasury yields could have been capped by the same reason around 1.95%. Consequently, the USD/JPY pair remains stuck around 119.00 levels.
Furthermore, an upbeat Chinese PMI data released earlier this week, along with ECB President Mario Draghi’s positive view on the Eurozone economy have capped losses in the Treasury yields. On the other hand, the 10-year also has a hard time rising above 2%, since the markets have ruled out a rate hike in June due to Fed’s “patient” approach.
USD/JPY Technical Levels
The pair has an immediate resistance at 119.40, above which gains could be extended to 120.00 levels. On the flip side, a break below the immediate support located at 118.89 could drive the pair lower to 118.42 levels.
Fed to remain “patient”, still rate hike in 2015 is on the cards
The June rate hike is off the table, although the markets still believe that the Fed would raise interest rates in 2015. Thus, losses in the 10-year treasury yields could have been capped by the same reason around 1.95%. Consequently, the USD/JPY pair remains stuck around 119.00 levels.
Furthermore, an upbeat Chinese PMI data released earlier this week, along with ECB President Mario Draghi’s positive view on the Eurozone economy have capped losses in the Treasury yields. On the other hand, the 10-year also has a hard time rising above 2%, since the markets have ruled out a rate hike in June due to Fed’s “patient” approach.
USD/JPY Technical Levels
The pair has an immediate resistance at 119.40, above which gains could be extended to 120.00 levels. On the flip side, a break below the immediate support located at 118.89 could drive the pair lower to 118.42 levels.