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3 Aug 2015
USD/JPY sees moderate strength, treasury yield curve flattens
FXStreet (Mumbai) - The USD/JPY is trading moderately higher in the early European session as the treasury yield curve continues to flatten ahead of the personal spending report in the US.
USD/JPY trades above 124.00
The spot rose to a session high of 124.12. The two-year yield in the US, which tracks rate hike expectations, currently trades 1.2 basis points higher at 0.688%. Meanwhile, the 10-year yield is moderately weak at 2.198%, while the 30-year yield is down 1.6 basis points at 2.912%. The flattening of the yield curve usually happens when markets anticipate the rise in the interest rate hike.
Ahead in the day, the US June personal spending report (expected 0.2%, previous 0.9%) and July ISM manufacturing (expected 53.5, previous 53.5).
USD/JPY Technical Levels
The spot currently trades around 124.05. The immediate resistance is located at 124.58 (July 30 high) and 125.06 (June 2 high). On the other hand, support is seen at 123.77 (5-DMA) and 123.55 (50-DMA).
USD/JPY trades above 124.00
The spot rose to a session high of 124.12. The two-year yield in the US, which tracks rate hike expectations, currently trades 1.2 basis points higher at 0.688%. Meanwhile, the 10-year yield is moderately weak at 2.198%, while the 30-year yield is down 1.6 basis points at 2.912%. The flattening of the yield curve usually happens when markets anticipate the rise in the interest rate hike.
Ahead in the day, the US June personal spending report (expected 0.2%, previous 0.9%) and July ISM manufacturing (expected 53.5, previous 53.5).
USD/JPY Technical Levels
The spot currently trades around 124.05. The immediate resistance is located at 124.58 (July 30 high) and 125.06 (June 2 high). On the other hand, support is seen at 123.77 (5-DMA) and 123.55 (50-DMA).