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20 Apr 2015
USD/JPY: retreats for seventh consecutive session
FXStreet (Mumbai) - The USD/JPY pair retreated on Monday after having faced rejection by 5-DMA located at 118.90 levels. The pair is down for the seventh consecutive session, clocking a three-week low of 118.52 levels.
Yen fails to weaken on uptick in Treasury yields
The pair continues to trade at 118.62 levels, despite the strength in the US treasury yields. The 10-year yield trades 1.2 basis points higher at 1.862%, while the 30-year yield advanced 1.7 basis points to 2.522%. However, the uptick in the yields has been unable to lift up the USD/JPY pair.
Meanwhile, the risk assets have failed to strengthen much even though China announced a largest Reserve Requirement Ratio (RRR) cut since 2008 – by 100 bps from 19.5% to 18.5%.
USD/JPY Technical Levels
The immediate resistance is located at 118.90 (5-DMA), above which gains could be extended to 119.26 (100-DMA). On the other hand, a break below 118.31 (Mar. 26 low), could push the pair lower to 117.75 levels.
Yen fails to weaken on uptick in Treasury yields
The pair continues to trade at 118.62 levels, despite the strength in the US treasury yields. The 10-year yield trades 1.2 basis points higher at 1.862%, while the 30-year yield advanced 1.7 basis points to 2.522%. However, the uptick in the yields has been unable to lift up the USD/JPY pair.
Meanwhile, the risk assets have failed to strengthen much even though China announced a largest Reserve Requirement Ratio (RRR) cut since 2008 – by 100 bps from 19.5% to 18.5%.
USD/JPY Technical Levels
The immediate resistance is located at 118.90 (5-DMA), above which gains could be extended to 119.26 (100-DMA). On the other hand, a break below 118.31 (Mar. 26 low), could push the pair lower to 117.75 levels.