21 Jul 2015
USD/JPY consolidates around 124.35 as Treasury yields stay flat
FXStreet (Mumbai) - The lacklustre action in the treasury yields weakened the bid tone on the USD and led to a sideways movement in the USD/JPY pair around 124.35 levels.
Pair awaits US data
The rising expectations of interest rate outlook in the US pushed the two-year yield in the US to a 2-1/2 week high of 0.71% on Monday on the back of hawkish comments from Fed’s Bullard. Consequently, the spot rose to a high of 124.47, but ran into offers as it neared 124.50, a level which acted as a strong resistance twice in June. Moreover, the treasury yields are trading flat, with the two-year yield trading lower than the 2-1/2 week high of 0.71%.
The pair now awaits US data – Housing price index, Markit services PMI, and Existing home sales. An upbeat data could add to interest rate hike expectations and strengthen the bid tone on the USD.
USD/JPY Technical Levels
The immediate support is seen at 124.00 followed by another support at 123.77 (61.8% Fib R of June-July plunge). On the other hand, resistance is seen at 124.56 (76.4% Fib R of June-July rally), followed by another hurdle at 125.00.
Pair awaits US data
The rising expectations of interest rate outlook in the US pushed the two-year yield in the US to a 2-1/2 week high of 0.71% on Monday on the back of hawkish comments from Fed’s Bullard. Consequently, the spot rose to a high of 124.47, but ran into offers as it neared 124.50, a level which acted as a strong resistance twice in June. Moreover, the treasury yields are trading flat, with the two-year yield trading lower than the 2-1/2 week high of 0.71%.
The pair now awaits US data – Housing price index, Markit services PMI, and Existing home sales. An upbeat data could add to interest rate hike expectations and strengthen the bid tone on the USD.
USD/JPY Technical Levels
The immediate support is seen at 124.00 followed by another support at 123.77 (61.8% Fib R of June-July plunge). On the other hand, resistance is seen at 124.56 (76.4% Fib R of June-July rally), followed by another hurdle at 125.00.