USD/JPY hits 4-day low amid falling treasury yields

The American dollar is feeling the pull of gravity, possibly due to the slide in the treasury yields.
The 10-year yield fell below its 200-day MA for the first time since November 2017.
The USD/JPY hit a four-day low soon before press time and could slide further as the 10-year yield is looking south, having witnessed a double bottom breakdown last month.

Omkar Godbole FXStreet Contributor

The anti-risk Japanese yen is pushing higher against its American counterpart amid losses in the treasury yields.

At press time, the USD/JPY pair is trading at a four-day low of 113.29 - down 0.33 percent on the day - having clocked a high of 113.66 earlier today.

The pair has likely been dragged lower by the 10-year treasury yield, which fell below its 200-day MA of 2.96 percent soon before press time - its first break below the long-term MA in over 12 months.

Notably, the yield fell six basis points yesterday, reinforcing the bearish view put forward by the double top breakdown (confirmed last month) after the US ISM prices paid index showed a sharp drop in the inflation rate in November.

As a result, the yield could drop further to 2.85 percent in the near term, as called by last month's double top breakdown. So, for the USD/JPY pair, the path of least resistance is to the downside.

USD/JPY Technical Levels

USD/JPY

Overview:
    Today Last Price: 113.32
    Today Daily change: -34 pips
    Today Daily change %: -0.299%
    Today Daily Open: 113.66
Trends:
    Previous Daily SMA20: 113.4
    Previous Daily SMA50: 113.08
    Previous Daily SMA100: 112.25
    Previous Daily SMA200: 110.46
Levels:
    Previous Daily High: 113.83
    Previous Daily Low: 113.37
    Previous Weekly High: 114.04
    Previous Weekly Low: 112.88
    Previous Monthly High: 114.25
    Previous Monthly Low: 112.3
    Previous Daily Fibonacci 38.2%: 113.55
    Previous Daily Fibonacci 61.8%: 113.65
    Previous Daily Pivot Point S1: 113.41
    Previous Daily Pivot Point S2: 113.17
    Previous Daily Pivot Point S3: 112.96
    Previous Daily Pivot Point R1: 113.87
    Previous Daily Pivot Point R2: 114.07
    Previous Daily Pivot Point R3: 114.32

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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