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6 May 2015
USD/JPY drops to session lows near 119.80
FXStreet (Mumbai) - The US dollar erased previous gains and trades flat versus the yen in the early European trades, knocking-off USD/JPY to fresh session lows, mainly driven by persistent weakness in the US dollar backed by lack lustre US macro data, shrugging off higher treasury yields.
USD/JPY drops from 119.94
Currently, the USD/JPY pair trades modestly flat at fresh session lows of 119.83, facing rejection at 120 handle. The USD/JPY pair wiped out previous gains and trades muted largely as the US dollar accelerated losses as markets continue to weigh the latest mixed set of US macro data which fuelled concerns over US economic recovery
The US dollar index which measures the relative strength of the greenback versus six major currencies retreated from 95.35 highs and now trades at 94.94, down -0.35% on the day.
Moreover, USD/JPY fell to fresh lows also as markets ignored a rebound seen in the shorter duration and longer duration treasury yields, with the 2-yr yields well above 0.62 %, up 4.67% so far and 10-yr yields at 2.18%, recording a 2.19% gain on the day.
Meanwhile, traders now await US ADP non-farm employment change data together with Fed Chair Yellen’s speech due later in the day for further cues on the US dollar moves. While the major highlight for the week remains NFP due on Friday.
USD/JPY Technical Levels
To the upside, the next resistance is located at 120.30 (May 1 High)) levels and above which it could extend gains 120.50 levels. To the downside immediate support might be located at 119.71 (May 5 Low) below that at 119.34 (May 1 Low) levels.
USD/JPY drops from 119.94
Currently, the USD/JPY pair trades modestly flat at fresh session lows of 119.83, facing rejection at 120 handle. The USD/JPY pair wiped out previous gains and trades muted largely as the US dollar accelerated losses as markets continue to weigh the latest mixed set of US macro data which fuelled concerns over US economic recovery
The US dollar index which measures the relative strength of the greenback versus six major currencies retreated from 95.35 highs and now trades at 94.94, down -0.35% on the day.
Moreover, USD/JPY fell to fresh lows also as markets ignored a rebound seen in the shorter duration and longer duration treasury yields, with the 2-yr yields well above 0.62 %, up 4.67% so far and 10-yr yields at 2.18%, recording a 2.19% gain on the day.
Meanwhile, traders now await US ADP non-farm employment change data together with Fed Chair Yellen’s speech due later in the day for further cues on the US dollar moves. While the major highlight for the week remains NFP due on Friday.
USD/JPY Technical Levels
To the upside, the next resistance is located at 120.30 (May 1 High)) levels and above which it could extend gains 120.50 levels. To the downside immediate support might be located at 119.71 (May 5 Low) below that at 119.34 (May 1 Low) levels.