FXStreet (Mumbai) – The USD/JPY fell in Asia and remains below 122.41 (23.6% of 118.06-123.76), while the treasury yields weakened moderately.
Risk-off ahead?
The move indicates the risk-off mood might prevail in the European session. The major European equity index futures are trading flat to negative, while the Asian markets traded mixed.
However, the traditional safe havens are on the rise in early Europe. Even gold prices inched higher to near USD 1180/Oz levels, while the 10-year treasury yield dripped almost 2 basis points. It remains to be seen if the European equities turn higher or follow the safe havens and suffer losses.
USD/JPY Technical Levels
The pair fell to a fresh session low of 122.26. The immediate resistance is seen at 122.87 (10-DMA) and 123.00, above which it may test offers at 123.26 (Nov 23 high). On the other side, support is seen at 122.22 (Nov 16 low) and 121.76 (100-DMA).
(Market News Provided by FXstreet)