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28 Jan 2015
USD/JPY back above 118.00 levels
FXStreet (Mumbai) - The USD/JPY pair is back above 118.00 levels, as the US dollar is showing signs of strength ahead of the FOMC meeting.
Treasury yields rise
The Yen came under pressure as the Treasury yields in the US have recovered ahead of the FOMC meet. The 10-year yield has recovered from the low of 1.748% seen yesterday, to trade at 1.827%. Meanwhile, the 2-year yield, which mimics the short-term interest rate expectations, also recovered from the low of 0.482% to trade at 0.515%.
Moreover, the yields have recovered on expectations that the Federal Reserve is likely to maintain its hawkish stance with respect to interest rates today. Consequently, the rising yields have pushed the USD/JPY pair higher. However, losses in the Yen may be capped by risk aversion in the equity markets.
USD/JPY Technical Levels
The pair currently trades at 118.06; up 0.19% for the day. The immediate resistance is seen at 118.70, above which the pair could test the 50-DMA located at 119.00 levels. On the flip side, the support is seen at 117.32 and 116.91 levels.
Treasury yields rise
The Yen came under pressure as the Treasury yields in the US have recovered ahead of the FOMC meet. The 10-year yield has recovered from the low of 1.748% seen yesterday, to trade at 1.827%. Meanwhile, the 2-year yield, which mimics the short-term interest rate expectations, also recovered from the low of 0.482% to trade at 0.515%.
Moreover, the yields have recovered on expectations that the Federal Reserve is likely to maintain its hawkish stance with respect to interest rates today. Consequently, the rising yields have pushed the USD/JPY pair higher. However, losses in the Yen may be capped by risk aversion in the equity markets.
USD/JPY Technical Levels
The pair currently trades at 118.06; up 0.19% for the day. The immediate resistance is seen at 118.70, above which the pair could test the 50-DMA located at 119.00 levels. On the flip side, the support is seen at 117.32 and 116.91 levels.