FXStreet (Mumbai) – The Japanese Yen failed to strengthen on upbeat industrial production data, as the USD/JPY pair recovered from the low of 123.32 to trade at 123.48 levels.
Gains capped by weak Treasury yields
The weakness in the treasury yields is capping further recovery in the pair. The 140-year treasury yield in the US is down 1.4 basis points at 2.37%. The yield had clocked a high of 2.5% in the previous session, before the fall in German yields dragged it lower.
However, the Japanese Yen also failed to strengthen on 1.2% month-on-month rise in the Japanese industrial production. At the moment, the pair is trading at 123.50; largely unchanged for the day.
USD/JPY Technical Levels
The immediate resistance is located at 123.77 (5-DMA), above which gains could be extended to 124.00. On the flip side, a break below 123.30 could push the pair down to 122.85.
(Market News Provided by FXstreet)