FXStreet (Mumbai) – The USD/JPY pair is mimicking the moves in the US Treasury yields since the Asian session today after weak China imports data triggered a minor bout of risk aversion in the Asian and European stocks.
USD/JPY off lows along with Treasury yields
The benchmark 10-yr treasury yield in the US was down 6 basis points earlier today, but has recovered now to trade with 4 basis point losses. On similar lines, the USD/JPY pair trimmed losses to trade around 119.78 levels.
In the US session, the pair is at the mercy of the sentiment on the Wall Street. Comments from Fed official Bullard may also influence treasury yields and the USD/JPY pair.
USD/JPY Technical Levels
The pair now trades at 119.80. The immediate support is seen at 119.62 (Oct 8 low), under which the pair could drop to 119.05 (Sep 18 low) and 118.68 (Oct 2 low). On the higher side, resistance is seen at 120.00, followed by 120.22 (triangle resistance on the daily chart). Above 120.22, the pair could test offers at 120.56 (Oct 6 high).
(Market News Provided by FXstreet)