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FXStreet (Mumbai) - The USD/JPY pair has pared gains to trade at 119.34 levels, after having hit a high of 119.78 levels. The weakness in the US treasury yields is supporting the Japanese Yen.
Yen gains as 10-year treasury yield falls
The 10-year yield in the US fell three basis points to 1.867%, while the 30-year yield declined more than three basis points to 2.538%. Consequently, the Japanese Yen, which tracks Treasury prices, recovered losses against the USD.
Moreover, the safe haven assets are showing signs of strength ahead of the US session on concerns over the lack of an agreement on economic reforms for bailout funds between Greece and its creditors. The pair could extend the drop if the treasury yields continue to slide ahead in the data.
USD/JPY Technical Levels
The immediate support is located at 119.26 (100-DMA), under which losses could be extended to the previous session’s low of 118.52. On the flip side, a break above 119.42 (5-DMA) could drive the pair higher to its 50-DMA located at 119.91.