5 Jan 2015
USD/JPY likely to test 118.70 this week – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, explains the direct relation between USD/JPY and US 10Yr yields, and anticipates the pair to test 118.70 levels with the 10Yr Yields likely to test 2.00%.
Key Quotes
“US 10-yr Treasury yield appears weak. Yields have repeatedly failed since November to extend gains above 2.3% level.”
“Rout in Crude oil, concerns of a slowdown in China and Eurozone have collectively led to a decline in the long-end of the treasury market curve.”
“Along with these concerns, markets now face renewed fears of “Grexit”.”
“Thus, the safe haven demand for the 10-year Treasuries is likely to remain high till the outcome of the Greek elections later this month.”
“Consequently, the treasury yield curve is likely to flatten – short-end yields outperform the ones at the long-end.”
“USD/JPY has direct relation to the 10-yr (long-end) yields. With the 10-yr yields more likely to test 2.00%, the USD/JPY pair may fall to the 50-DMA located at 118.70 levels”
Key Quotes
“US 10-yr Treasury yield appears weak. Yields have repeatedly failed since November to extend gains above 2.3% level.”
“Rout in Crude oil, concerns of a slowdown in China and Eurozone have collectively led to a decline in the long-end of the treasury market curve.”
“Along with these concerns, markets now face renewed fears of “Grexit”.”
“Thus, the safe haven demand for the 10-year Treasuries is likely to remain high till the outcome of the Greek elections later this month.”
“Consequently, the treasury yield curve is likely to flatten – short-end yields outperform the ones at the long-end.”
“USD/JPY has direct relation to the 10-yr (long-end) yields. With the 10-yr yields more likely to test 2.00%, the USD/JPY pair may fall to the 50-DMA located at 118.70 levels”