Bank of Japan’s (BOJ) Kuroda tried to weaken Yen but stating readiness to do more but failed as the USD/JPY pair remains weak around 107.80 levels. Weak Treasury yields restrict USD demand The dollar side of the strong is not helping the pair either. The long duration and short duration treasury yields are trading weak and that is capping demand for the US dollars. As of writing, the 10-yr yield was down almost 2 basis points. Meanwhile, Yen bears have little reason to try and catch the falling knife as most policymakers at BOJ seem to agree that further easing at the moment is not required and may not result in Yen weakness. USD/JPY Technical Levels The immediate resistance is noted at 108.38 (hourly 50-DMA), above which gains could be extended to 108.82 (5-DMA). A break higher would expose 109.27. On the other hand, a break below 107.63 (daily low) would shift risk in favor of a drop to 107.00. A violation there would expose 106.64 (38.2% of 2011 low-2015 high). For more information, read our latest forex news.