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USD/JPY supported by hourly 50-MA, Treasury yields rise

FXStreet (Mumbai) - The USD/JPY pair flirted with the hourly 50-Main Europe, before rising slightly to trade around 123.40 while the treasury yields rose ahead of the FOMC minutes.

All Eyes on FOMC minutes

The FOMC minutes of the Oct meeting due for release later today are widely expected to reinforce rate hike bets. Any hint at a liftoff in Dec is likely to be considered as a confirmation by the markets. Meanwhile, markets would also be interested to see if the policymakers prefer a normal 25bps or move or something lower.

In case of a hawkish FOMC minutes, the pair appears more likely to extend the two-day winning streak today. The 10-yr treasury yield and the more policy sensitive 2-yr yield have ticked higher by 1 bps each.

USD/JPY Technical Levels

The immediate resistance is located at 123.60 (Nov 9 high), above which the pair could target 124.00 handle. On the other side, the hourly 50-MA at 123.30 could once again offer support followed by a major support at 123.04 (hourly 200-MA).

USDCAD price action contained - TDS

Research Team at TDS, notes that the USDCAD price action has been rather lacklustre recently as the 1.3300 figure has served as a resting state for funds with spot is trading in line with our fair value estimate.
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Karen Jones, Head of FICC Technical Analysis at Commerzbank, sees the likeliness of the pair to test the 125.00/28 area once 123.75 is cleared...
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