USD/JPY at ten-day low, 2-yr yield weakens

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 14, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The USD was offered across the board after dismal US retail sales data, pushing the USD/JPY pair to a ten-day low of 119.27 and the 2-year treasury yield lower to 0.577%.

    Bearish break in USD/JPY

    The pair now trades below the key support of the symmetrical triangle at 119.43 levels. A 5 basis point drop in the two-year yield, which represents short-term rate hike bets could lead to a bearish daily close in the pair below 119.43.

    Ahead in the day, the positive action in the US equities could offer support to the USD/JPY pair, however, broad based USD weakness may not halt, given the drop in the rate hike bets.

    USD/JPY Technical Levels

    The spot now trades around 119.30 with the immediate support located at 119.00; under which 118.68 (Oct 2 low) could offer support to the pair. A break below the same could expose 118.36 (127.2% Fib E of 125.28‐119.837‐125.28). On the other side, resistance is seen at 119.43 (trendline resistance), followed by a major hurdle at 120.00 levels.
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