FXStreet (Mumbai) - The USD/JPY continues its slow decline, falling to its 5-DMA at 120.11, while the treasury yields trade flat despite amid modest gains in European equities.
JPY – Safe haven bids intact
The Japanese Yen is on the run right from the Asian session as the losses in the Chinese and Japanese equities triggered risk aversion. However, European equities have turned moderately positive. The Pan-European Euro Stoxx 50 advanced less 0.10%. Still, the JPY remains in demand. On the other hand, the 10-yr treasury yield is dead flat.
The spot could continue to track the movement in the equities across Europe and later in the US. Meanwhile, uncertainty ahead of Thursday’s FOMC could also keep traditional safe haven assets in demand.
USD/JPY Technical Levels
The spot currently trades around 120.20 levels. The immediate support is seen at 120.00, under which the losses could be extended to 119.60 (38.2% of 125.28-116.08). On the other side, resistance is seen at 120.81 (200-DMA) and 121.32 (Sep 10 high).
For more information, read our latest forex news.
No comments:
Post a Comment