USD/JPY analysis: yields plummeted, USD/JPY follows

Valeria Bednarik FXStreet

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

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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