USD/JPY pair has surrendered gains and is now threatening to drop into losses as the US treasury yields declined.
End of 7-day winning streak?
Pair has been on a 7-day winning streak and looked poised to extend it today as well. The pair clocked a high of 113.80 in Europe before treasury yields turned red and weakened the bid tone around USD.
Consequently, the pair surrendered gains and now trades unchanged on the day around 113.44 levels. Given the drop in oil and talk of negative rates in the US, the treasury yields may remain under pressure and thus put an end to pair’s 7-day winning streak.
However, the pair may extend winning streak if Fed’s Yellen talks up April/June rate hike bets later today.
USD/JPY Technical Levels
Acceptance above rising trend line hurdle of 113.89 (rising trend line hurdle), could see the spot could target 114.44 (Mar 10 high) and 114.58 (50-DMA). Conversely, a break below 113.27 (23.6% of 121.69-110.67) would expose 10-DMA of 112.51 and 112.22 (Mar 9 low).
(Market News Provided by FXstreet)