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30 May 2014
USD/JPY trims intraday losses
FXStreet (Córdoba) - The USD/JPY remained under pressure Friday and declined during the Asian session before steadying as the recent decline in US yields is weighing on the pair.
USD/JPY weighed by US yields
US 10-year note yields fell to its lowest in almost a year Thursday after data showed the US economy contracted by 1.0% in the first quarter of 2014. Against this backdrop, the USD/JPY fell, although it managed to hold above the 101.40 support area, halting the decline a few pips ahead of the 200-day SMA.
Following a shy bounce, the pair dipped to retest lows Friday, but bears lacked determination. At time of writing, the USD/JPY is trading at the 101.60 zone, recording a 0.17% loss on the day and on track to end the week in negative territory.
From a wider view however, the pair continues to trade sideways in a range constrained by 101.60 and 104.00, where it has spent most of this year.
USD/JPY technical levels
As for technical levels, next supports are seen at 101.42 (May 29 low), 101.33 (200-day SMA) 101.09 (May 19 low). On the flip side, resistances could be found at 101.85 (May 29 high), and 102.02 (May 28 high).
USD/JPY weighed by US yields
US 10-year note yields fell to its lowest in almost a year Thursday after data showed the US economy contracted by 1.0% in the first quarter of 2014. Against this backdrop, the USD/JPY fell, although it managed to hold above the 101.40 support area, halting the decline a few pips ahead of the 200-day SMA.
Following a shy bounce, the pair dipped to retest lows Friday, but bears lacked determination. At time of writing, the USD/JPY is trading at the 101.60 zone, recording a 0.17% loss on the day and on track to end the week in negative territory.
From a wider view however, the pair continues to trade sideways in a range constrained by 101.60 and 104.00, where it has spent most of this year.
USD/JPY technical levels
As for technical levels, next supports are seen at 101.42 (May 29 low), 101.33 (200-day SMA) 101.09 (May 19 low). On the flip side, resistances could be found at 101.85 (May 29 high), and 102.02 (May 28 high).