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21 May 2015
USD/JPY steadies near 121.00
FXStreet (Mumbai) - The USD/JPY pair is trading steady just above 121.00 levels ahead of the key economic data releases in the US. The pair recovered from the low of 120.83 levels seen earlier today.
Upside capped by weak Treasury yields
With major bond markets showing signs of stabilization, the direct correlation between the long-term yields in the US and the USD/JPY pair is back in the game. The 10-year yield currently trades at 2.234%, down 1.6 basis points. Consequently, the pair is unable to extend gains above 121.00 levels.
Ahead in the day, the air is likely to take cues from the weekly jobless claims in the US, followed by a report on existing home sales and regional manufacturing activity.
USD/JPY Technical Levels
The immediate resistance is located at 121.20, above which the previous session’s high of 121.46 is likely to serve as a major hurdle. On the flip side, a break below 121.00 could see the pair re-test 120.83-120.780 levels.
Upside capped by weak Treasury yields
With major bond markets showing signs of stabilization, the direct correlation between the long-term yields in the US and the USD/JPY pair is back in the game. The 10-year yield currently trades at 2.234%, down 1.6 basis points. Consequently, the pair is unable to extend gains above 121.00 levels.
Ahead in the day, the air is likely to take cues from the weekly jobless claims in the US, followed by a report on existing home sales and regional manufacturing activity.
USD/JPY Technical Levels
The immediate resistance is located at 121.20, above which the previous session’s high of 121.46 is likely to serve as a major hurdle. On the flip side, a break below 121.00 could see the pair re-test 120.83-120.780 levels.