USD/JPY attempting gains above 113.00 as European stocks advance

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The offered tone around JPY is gathering pace, helping the USD/JPY pair extend gains above 113.00 levels amid moderate gains in the European stocks.

    Treasury yields cap gains in the USD

    The pair is struggling as the treasury yields in the US stay weak. The 10-yr yield has recovered from the daily lows, but still trades more than one basis point lower on the day. Hence, the pair is struggling to benefit from the moderate risk-on in the European equities.

    Ahead in the day, the US monthly CPI figures could affect overall demand for the US dollars. Oil price gyrations and broader market sentiment could also have a say in determining the exchange rate.

    USD/JPY Technical Levels

    The immediate resistance is seen at 113.22 (daily high), above which the spot could target 113.68 (hourly 50-MA). On the other hand, a breakdown of 112.71 (daily low) would expose 111.65 (Feb 12 low).
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