21 Jul 2015
USD/JPY: Bulls see exhaustion around 124.50
FXStreet (Mumbai) - The USD/JPY pair ran into offers around 124.50, a level where the pair flamed out twice in June.
USD/JPY: Tracks treasury yield
The stability in Chinese equity markets and falling Greece uncertainty has pushed the Fed one step closer to the rate hike. Consequently, the pair is tracking the treasury yields. The exhaustion witnessed today around 124.50 is in line with the weakness in the treasury yields. The 10-year yield currently trades almost one basis points lower at 2.365%.
Ahead in the day, the housing data and Markit services PMI data in the US could influence the rate hike expectations and the USD/JPY pair.
USD/JPY Technical Levels
The spot currently trades at 124.30. The immediate support is seen at 124.00 followed by another support at 123.77 (61.8% Fib R of June-July plunge). On the other hand, resistance is seen at 124.56 (76.4% Fib R of June-July rally), followed by another hurdle at 125.00.
USD/JPY: Tracks treasury yield
The stability in Chinese equity markets and falling Greece uncertainty has pushed the Fed one step closer to the rate hike. Consequently, the pair is tracking the treasury yields. The exhaustion witnessed today around 124.50 is in line with the weakness in the treasury yields. The 10-year yield currently trades almost one basis points lower at 2.365%.
Ahead in the day, the housing data and Markit services PMI data in the US could influence the rate hike expectations and the USD/JPY pair.
USD/JPY Technical Levels
The spot currently trades at 124.30. The immediate support is seen at 124.00 followed by another support at 123.77 (61.8% Fib R of June-July plunge). On the other hand, resistance is seen at 124.56 (76.4% Fib R of June-July rally), followed by another hurdle at 125.00.