FXStreet (Mumbai) – The risk-on sentiment in the markets today pushed the long duration treasury yields higher and led to a spike in the USD/JPY pair to 120.20 levels.
Safe havens drop
The traditional safe haven assets – Yen, CHF and Treasuries – weakened today as the uptick in the Chinese equities pushed the major European equities and US index futures higher. The yield on the 10-yr treasury yield rose 3 basis points to 2.158%, which helped the USD/JPY pair take out resistance at 120.00 and trade around 120.20 levels.
Ahead in the day, the overall market sentiment could continue to be the centre of attention. The consumer credit and NFIB small business optimism index due later today in the US could be ignored by the markets.
USD/JPY Technical Levels
The immediate resistance is seen at 120.21 (50-DMA), above which the spot could target 120.70 (Sept 2 high). On the other side, support is seen at 119.60 (5-DMA) and 119.00 levels.
(Market News Provided by FXstreet)