USD/JPY analysis: yields plummeted, USD/JPY follows
|USD/JPY Current price: 111.24
The USD/JPY pair fell down to 111.05, down after flirting with levels above 112.00 ahead of Fed's statement. As the US Central Bank failed to surprise, market players resumed dollar's selling, with Treasury yields coming back under pressure. By the end of the US session, the yield on the benchmark 10-year Treasury note slipped to 2.28% from previous 2.33%, while the yield on the 30-year Treasury bond was down to 2.90% from 2.91%. The Japanese calendar had little to offer on Wednesday, and will remain light this Thursday, which means that the pair will keep taking clues from yields and stocks. The decline is being limited by Wall Street's gains, but the risk is clearly towards the downside, although an extension below 110.90 is required to confirm so. The 4 hours chart shows that the pair faltered around its 200 SMA, while the 100 SMA turned modestly lower above the largest, and technical indicators head sharply lower, with the RSI indicator already at 42, supporting the bearish case.
Support levels: 110.90 110.60 110.25
Resistance levels: 111.60 112.00 112.45
View Live Chart for the USD/JPY
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.