USD/JPY jumps to 10-DMA

FXStreet (Mumbai) - The USD/JPY extended gains to its 10-DMA located at 119.68 levels, tracking the rise in the US Treasury yields.

Yen declines as Treasury yields extend gains

The 10-year Treasury yield extended gains to trade 2.4 basis points (bps) higher at 1.972%, while the 2-year yield advanced to 0.598%; up 1.5 bps. The strength in the yields weighed over the Japanese Yen, which also came under pressure due to the risk-on mood witnessed in the major European equity markets.

In the process, the pair rose above its 50-DMA located at 119.52 levels. The 100-DMA at 119.22 was taken out earlier today. Further gains could be seen in case Greece is able to unlock the next round of bailout funding.

USD/JPY Technical Levels

The immediate resistance is seen at 119.72 (38.2% Fib of 122.00-118.31), above which the pair could test 122.00 levels. On the flip side, support is seen at 119.52 (50-DMA) and 119.18 (23.65 Fib of 122.00-118.31).

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