USD/JPY: demoralized bulls struggle to extend gains above 118.00

FXStreet (Mumbai) - A moderate rise in the treasury yields in the US helped the USD/JPY pair advance, but the gains are hard to come as the offered tone is gaining pace in early Europe.

Stuck in a 40-pip range

The spot has been restricted in a 40-pip range of 117.80-118.20 levels since the Asian session. The uptick in the Asian equities and the resulting rise in the treasury yields kept the lid on the gains in the safe haven JPY.

Meanwhile, the upside has been capped by the speculation that Fed may delay plans to hike rates amid growing turbulence in the markets. The pair remains at the mercy of the overall market sentiment ahead of the US weekly jobless claims release.

USD/JPY Technical Levels

The spot trades around 117.90 levels. The immediate resistance is seen at 118.30 (23.6% of 125.856-115.97), above which the prices could target 119.08 (10-DMA). On the other hand, a break below the 117.65 (Jan 26 low) could open doors for a drop to 117.05 (previous day’s low).

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