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14 May 2015
USD/JPY rises above 119.00
FXStreet (Mumbai) - The USD/JPY ran into bids around 119.90, taking the pair higher to 119.24 levels amid weakness in the US Treasury yields and empty data docket in the Europe.
Correlation between US Treasury yields and USD/JPY weakens
Off-late the pair has been ignoring the Treasury yields, which are largely mimicking the movement in their German counterparts. Historically, the pair has had a strong direct relation with the 10-year Treasury yield in the US.
However, with the recent rout in the bond markets across the globe, the correlation appears to have weakened. The pair jumped to 119.24 levels in the European session today, despite the 10-year yield trading lower by more than one basis points at 2.26%.
USD/JPY Technical Levels
The immediate resistance is located at 119.37 (100-DMA), above which gains could be extended to 119.68 (10-DMA). On the other hand, a break below 118.87 could drive the pair lower to 118.48 (Apr. 30 low).
Correlation between US Treasury yields and USD/JPY weakens
Off-late the pair has been ignoring the Treasury yields, which are largely mimicking the movement in their German counterparts. Historically, the pair has had a strong direct relation with the 10-year Treasury yield in the US.
However, with the recent rout in the bond markets across the globe, the correlation appears to have weakened. The pair jumped to 119.24 levels in the European session today, despite the 10-year yield trading lower by more than one basis points at 2.26%.
USD/JPY Technical Levels
The immediate resistance is located at 119.37 (100-DMA), above which gains could be extended to 119.68 (10-DMA). On the other hand, a break below 118.87 could drive the pair lower to 118.48 (Apr. 30 low).