The Yen is solidly bid in Asia as the 10-year treasury yield fell to a 6-week low. USD/JPY fell to 108.92 – the lowest level since May 8. JPY calls are in demand, the risk reversals show. The bid tone around the Japanese Yen strengthened in Asia, pushing the USD/JPY pair down to 108.92 – the lowest level since May 8, possibly due to a drop in the US treasury yields. As of writing, the 10-year treasury yield is trading at 2.89 percent – down more than four basis points, having clocked a 6-week low of 2.88 percent a few minutes ago. Meanwhile, the USD/JPY pair is seen at 109.05. The spot may drop further if the Italian uncertainty boosts the Italian-German yield spread, which clocked a 5.5-year high of 232 basis points yesterday. The investors are likely expecting a deeper drop in the USD/JPY as the implied volatility premium for JPY calls (or demand for JPY calls), as represented by the one month 25 delta risk reversals, rose sharply in the last week. USD/JPY Technical Levels The immediate support is seen at 108.82 (38.2% Fib R of Mar-May rally), 108.65 (May 4 low) and 108.20 (100-day MA). Meanwhile, resistance is lined up at 109.42 (5-day MA), 109.83 (previous day’s high) and 110.00 (psychological hurdle). 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. View All Post By FX Street FXStreet News share Read Next US demanding North Korea to ship out nuclear weapons – Chosun FX Street 5 years The Yen is solidly bid in Asia as the 10-year treasury yield fell to a 6-week low. USD/JPY fell to 108.92 - the lowest level since May 8. JPY calls are in demand, the risk reversals show. The bid tone around the Japanese Yen strengthened in Asia, pushing the USD/JPY pair down to 108.92 - the lowest level since May 8, possibly due to a drop in the US treasury yields. As of writing, the 10-year treasury yield is trading at 2.89 percent - down more than four basis points, having clocked a 6-week low of 2.88 percent a few… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
