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12 Mar 2015
USD/JPY drops to 121.00
FXStreet (Mumbai) - The USD/JPY pair extended the drop to 121.00 levels as the spike in the EUR/USD pair triggered a broad based weakness in the US dollar.
Can JPY extend gains?
The Yen may struggle to extend gains as the 10-year Treasury yield in the US has erased losses to trade 1.3 basis points higher to 2.123%. However, the pair could extend the drop if the corrective rally in the EUR/USD pair manages to extend further. Meanwhile, weakness in the major European equities could help the Yen extend gains against the greenback.
Given the absence of major economic data during the European session, the pair is likely to take cues from the EUR/USD pair and European equity markets.
USD/JPY Technical Levels
A break below 121.00 could push the pair down to 120.80 levels. On the other hand, the pair could re-test 121.65 if the immediate resistance at 121.40 is taken out.
Can JPY extend gains?
The Yen may struggle to extend gains as the 10-year Treasury yield in the US has erased losses to trade 1.3 basis points higher to 2.123%. However, the pair could extend the drop if the corrective rally in the EUR/USD pair manages to extend further. Meanwhile, weakness in the major European equities could help the Yen extend gains against the greenback.
Given the absence of major economic data during the European session, the pair is likely to take cues from the EUR/USD pair and European equity markets.
USD/JPY Technical Levels
A break below 121.00 could push the pair down to 120.80 levels. On the other hand, the pair could re-test 121.65 if the immediate resistance at 121.40 is taken out.