Home 10-year treasury yield hits 5-day low, pushes USD/JPY below 100-HMA
FXStreet News

10-year treasury yield hits 5-day low, pushes USD/JPY below 100-HMA

  • The USD/JPY is exploring the downside  on speculation the Fed is nearing an end of the tightening cycle.  
  • The pair is being guided lower, possibly by the 10-year treasury yield, which hit five-day lows soon before press time.  

Powell’s dovish speech continues to weigh over both the US Treasury yields and the greenback.

At press time, the 10-year treasury yield is trading at a five-day low of 3.03 percent, having shed four basis points yesterday. More importantly, the decline in the treasury yields is likely pushing the USD/JPY pair lower.

The currency pair dipped below the 100-hour moving average (HMA) of 113.41 a few minutes before press time and could slide further, as the double top breakdown seen in the 10-year treasury yield’s daily chart is signaling the path of least resistance is to the downside.

Fed Chair Jerome Powell, at 17:00 GMT yesterday, said the interest rates are just below the range of neutral estimates, squashing bets of an extended tightening cycle. As a result, the dollar will likely remain on the defensive. The downside in the USD/JPY, however, could be limited as increased prospects of fewer Fed rate hikes could put a strong bid under the global equity markets.

USD/JPY Technical Levels

USD/JPY

Overview:
       Today Last Price:  113.38
       Today Daily change:  -25  pips
       Today Daily change %:  -0.220%
       Today Daily Open:  113.63
Trends:
       Previous Daily SMA20:  113.33
       Previous Daily SMA50:  113.03
       Previous Daily SMA100:  112.21
       Previous Daily SMA200:  110.37
Levels:
       Previous Daily High:  114.04
       Previous Daily Low:  113.44
       Previous Weekly High:  113.24
       Previous Weekly Low:  112.3
       Previous Monthly High:  114.56
       Previous Monthly Low:  111.38
       Previous Daily Fibonacci 38.2%:  113.67
       Previous Daily Fibonacci 61.8%:  113.81
       Previous Daily Pivot Point S1:  113.37
       Previous Daily Pivot Point S2:  113.1
       Previous Daily Pivot Point S3:  112.77
       Previous Daily Pivot Point R1:  113.97
       Previous Daily Pivot Point R2:  114.3
       Previous Daily Pivot Point R3:  114.57

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.