FXStreet (Mumbai) – The bid tone on the USD strengthened, taking the USD/JPY pair higher to 123.64 as demand for the safe haven treasuries rose on account of increasing threat of Grexit.
USD rises even as yields dip
The pair advanced on Monday as treasury prices advanced, pushing the yields lower. The 10-year yield fell 2.6 basis points to 2.36%, while the 30-year yield fell 2.3 basis points to 3.075%. Usually, the pair is known to respond positively to an uptick in Treasury yields. However, the Greek impasse led to a spike in demand for treasuries, leading to fall in the yields and rise in USD.
Ahead in the day, the safe haven trade could continue to play out amid Greek uncertainty. Meanwhile, the US industrial production data may also lead to a volatility in the pair.
USD/JPY Technical Levels
The pair currently trades at 123.60, with immediate resistance at 123.74, above which the pair could target 124.12 (10-DMA). On the flip side, a break below 123.28 could drive the pair lower to 122.50.
(Market News Provided by FXstreet)