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10 Feb 2015
USD/JPY rises to 119.00 as the 10-year Treasury yield hits 2% level
FXStreet (Mumbai) - The Japanese Yen extended losses against the USD, taking the USD/JPY pair higher to 119.00 levels, as the 10-year Treasury yield in the US rose to 2% for the first time in over a month.
Rate hike expectations push up the Treasury yields
The stellar jobs report in the US for the last three months has led markets to believe that the Federal Reserve would hike interest rates in September 2015. The 10-year yield rose from 1.8% to the current level of 2% after Friday’s Non-farm payrolls data, which showed the economy added another 257K jobs in January.
Consequently, the USD/JPY pair rose from 117.20 levels seen on Friday to trade at 119.00 levels today. Further gains in both the Treasury yield as well as the USD/JPY pair depends on how the situation in the Greece and Ukraine unfolds. Risk aversion in the markets may push the yields lower along with the USD/JPY pair.
USD/JPY Technical Levels
The pair trades 119.00 levels; up 0.29% for the day. The immediate resistance is located at 119.30 and 120.00 levels. On the flip side, a failure to rise above 119.00 levels could see the pair re-test of 118.60 levels.
Rate hike expectations push up the Treasury yields
The stellar jobs report in the US for the last three months has led markets to believe that the Federal Reserve would hike interest rates in September 2015. The 10-year yield rose from 1.8% to the current level of 2% after Friday’s Non-farm payrolls data, which showed the economy added another 257K jobs in January.
Consequently, the USD/JPY pair rose from 117.20 levels seen on Friday to trade at 119.00 levels today. Further gains in both the Treasury yield as well as the USD/JPY pair depends on how the situation in the Greece and Ukraine unfolds. Risk aversion in the markets may push the yields lower along with the USD/JPY pair.
USD/JPY Technical Levels
The pair trades 119.00 levels; up 0.29% for the day. The immediate resistance is located at 119.30 and 120.00 levels. On the flip side, a failure to rise above 119.00 levels could see the pair re-test of 118.60 levels.