USD/JPY surrenders early gains, tracking weaker US bond yields
| • USD manages to preserve daily gains but fails to lend support.
• Traders tracking weakness in the US bond yields.
The USD/JPY pair struggled to build on its early up-move, beyond the 107.00 handle and has now retreated to the lower end of its daily trading range.
After yesterday's sharp retracement, the pair regained traction on Friday and was being supported by some renewed buying interest around the US Dollar, which has managed to preserve modest daily gains.
The pair, however, seemed to track weakness in the US Treasury bond yields, while a subdued action around European equity markets also doing little to influence the Japanese Yen's safe-haven demand.
There isn't any major market-moving economic data, due for releases from the US on Friday and hence, the US bond yield dynamics might continue to act as an exclusive driver of the pair's momentum on the last trading day of the week.
Technical levels to watch
A follow-through weakness below mid-106.00s is likely to accelerate the fall towards 106.10 horizontal support before the pair eventually breaks below the 106.00 handle and resumes with its prior depreciating move.
On the upside, 107.10-15 area now seems to have emerged as an immediate resistance, which if cleared is likely to accelerate the up-move back towards 107.75 supply zone en-route the 108.00 handle.
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.