5 Jun 2015
USD/JPY testing highs near 124.80
FXStreet (Mumbai) - The US dollar accelerate gains versus the Japanese currency in the European session, pushing USD/JPY closer towards 125 barrier, largely on yen’s underperformance as diverging monetary policy outlooks between the US and the Japan, keeps the Japanese currency undermined. While rising treasury yields ahead of US jobs report also supports the major.
USD/JPY eyes 125
Currently, the USD/JPY pair trades 0.33% higher at 124.77, hovering close to fresh session highs at 124.81. The USD/JPY pair gathered further momentum after the US treasury yields climbed higher in anticipation of above estimates US NFP figures, which may eventually translate into a Fed rate hike as early as this Sept. The 10-yr and 2-yr yields on the US treasury bills stand at 2.337% and 0.673% respectively, both recording nearly 1.50% gain on the day.
In addition, the yen remains undermined reacting mainly to the diverging prospects for monetary policy in Japan and the US, where the interest rate differential favours greenback buyers.
The Bureau of Labor Statistics will publish May's non-farm payrolls later in the NA session, which is expected to print a slightly improved figure of 227,000 after 223,000 booked previously.
USD/JPY Technical Levels
To the upside, the next resistance is located at 124.93 (June 1 High) levels and above which it could extend gains 125.06 (June 2 High) levels. To the downside immediate support might be located at 124 below that at 123.76 (June 4 Low) levels.
USD/JPY eyes 125
Currently, the USD/JPY pair trades 0.33% higher at 124.77, hovering close to fresh session highs at 124.81. The USD/JPY pair gathered further momentum after the US treasury yields climbed higher in anticipation of above estimates US NFP figures, which may eventually translate into a Fed rate hike as early as this Sept. The 10-yr and 2-yr yields on the US treasury bills stand at 2.337% and 0.673% respectively, both recording nearly 1.50% gain on the day.
In addition, the yen remains undermined reacting mainly to the diverging prospects for monetary policy in Japan and the US, where the interest rate differential favours greenback buyers.
The Bureau of Labor Statistics will publish May's non-farm payrolls later in the NA session, which is expected to print a slightly improved figure of 227,000 after 223,000 booked previously.
USD/JPY Technical Levels
To the upside, the next resistance is located at 124.93 (June 1 High) levels and above which it could extend gains 125.06 (June 2 High) levels. To the downside immediate support might be located at 124 below that at 123.76 (June 4 Low) levels.