FXStreet (Mumbai) – The broad based sell-off in the USD on the back of a dip in the treasury yields pushed the USD/JPY pair to a session low of 122.64.

USD sell-off continues

The downward revision of the end-2016 median rate forecast by the Fed triggered a sell-off in the USD, which has been extended today during the European session. Consequently, the USD/JPY pair extended losses to a low of 122.64 levels.

The uptick in the Yen also found support from the weakness in the Treasury yields. The 10-year yield currently trades 3.8 basis points lower to 2.27%, while three 30-year yield trades 2.5 basis points to 3.048%. Ahead in the day, the pair could be influenced by the US data – CPI, weekly jobless claims.

USD/JPY Technical Levels

The pair currently trades at 122.78, with the immediate resistance at 122.86, above which the pair could target 123.70. On the flip side, a break below 122.44 could drive the pair lower to 121.59 (50-DMA).

The broad based sell-off in the USD on the back of a dip in the treasury yields pushed the USD/JPY pair to a session low of 122.64.

(Market News Provided by FXstreet)

By FXOpen