USD/JPY rises despite US govt shutdown, yields rise

Omkar Godbole FXStreet Contributor

USD/JPY has begun the week on a positive note, trading 0.10 percent higher on the day at 110.80 levels as I write.

The dollar found bids around 110.50 levels, seemingly due to the continued ascent of the treasury yields. The 10-year yield rose to 2.672 percent earlier today; its highest level since July 2014.

US government remains shut

As per latest reports, US government will remain shut at least till stopgap vote scheduled at Noon (EST) today.

The bid tone around the Japanese Yen may strengthen if the US equities react negatively to a government shutdown, although as of writing, the S&P 500 futures are showing no signs of stress.

USD/JPY Key Levels

AceTrader Team writes, "looks like a range trading above Friday's 110.49 low would continue to European open. Bids are noted at 110.60-50 with stops building up below last week's low at 110.20, however, there is market chatter of option defence at 110.00. Offers are tipped at 111.85/95 with stops above 111.0, more stops are reported above 111.20."

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Neutral	Low
1H	Bullish	Neutral	Shrinking
4H	Bullish	Neutral	Low
1D	Bearish	Neutral	High
1W	Bullish	Neutral	Low
Updated Jan 22, 05:15 GMT

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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