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    USD/JPY sees aggressive selling as treasury yields slump, 101.50 eyed Dhwani Mehta

    The recent USD/JPY selling spiral found extra legs after the European equities dived into the negative territory, as uncertainty over Italian banks resurfaced and spooked markets, boosting the safe-haven demand for the JPY.USD/JPY aims to test 101.50The Japanese currency picked-up significant strength against its American counterpart post-European session, as risk-off moods intensified amid tumbling oil prices along with the European equities. At the time of writing, USD/JPY drops -0.85% to fresh five-day lows at 101.70, while the pan-European benchmark, the Euro Stoxx 50 slides -1.20%.Moreover, the latest leg lower in the major can be attributed to the falling US treasury yields, with the benchmark 10-year treasury yields slumps over 6% to a record low of 1.3766% on increased flight to safety as well as on fading hopes of a Fed rate hike this year.Next of note for the major remains the US factory orders and Fed official Dudley’s speech due later today for further impetus on the pair.USD/JPY Technical levels to watchIn terms of technicals , the immediate resistance is located at 102 (round number). A break above the last, the major could test 102.46/52 (10 & 5-DMA). While to the downside, the immediate support is seen at 101.52 (Jun 28 Low) and below that at 101 (round figure).

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