Yen stays firm on the session as Treasury yields slip to lowest level since April

Technical Analysis

USD/JPY pressured to session lows of 107.73 on the day

The yen is keeping firmer in general as we are seeing a bid in Treasuries with 10-year yields seen falling to 0.569%, its lowest level since 22 April. US 30-year yields have also fallen to 1.253%, its lowest level since 15 May, in trading today.
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The move in yields isn’t quite breaking the range seen since April with lows around 0.539% to 0.566% a key region to watch in that regard.

Much like how the melt up in yields seen at the start of June – which became a fake out – saw USD/JPY break above its key daily moving averages in a move to 109.85, before falling back, be mindful of a possible melt to the downside if the range breaks.

For USD/JPY, topside is limited by the 100-day moving average in recent days with support seen closer around the region of 106.40-50 but the key region to watch will be near the 106.00 handle where we saw lows posted in May and on 23 June:

USD/JPY D1 10-07

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