The moderate uptick in the treasury yields failed to strengthen USD/JPY,
which now trades lacklustre around 120.50 levels.
Yields rise,
USD trims gains
The 2-yr yield, which mimics rate hike bets
gained one basis points, while the 10-yr yield gained more than two basis
points. However, the USD isn’t impressed as the pair turned lower from the high
of 120.70 to trade around 120.50 ahead of the US data.
The focus is now
on the US ISM manufacturing report, which could show the activity stalled in
October. Apart from the data, the sentiment on Wall Street could affect demand
for the safe haven Yen.
Below is the history of ISM Manufacturing, Please look for Forecast
USD/JPY Technical
Levels
The immediate resistance is seen at 121.03 (200-DMA0,
above which gains could be extended to 121.48 (Friday’s high) followed by a rise
to 121.81 (100-DMA). On the other side, support is seen at 120.16 (50-DMA) and
120.00, under which losses could be extended to 119.81 (38.2% of
125.856-116.082).
H120.55 L120.512 Trend: Bullish, OS/OB Index: Neutral
