USD/JPY testing supply around 104.00

Dollar-Yen pair is tesintg supply around 104.00 levels, although odds of the pair chewing through offers around the psychological resistance are high given the rise in the treasury yields.

Focus on equities

The steepening of the yield curve across the advanced world has pushed funding currencies like JPY lower across the globe. The focus now is on whether the rise inyields weighs over the equitymarkets. If so, the fuding currencies could take back part of the losses seen in Asia.

The data docket is light, hence apart from the equities; the pair could continue to track the movement in oil prices.

The bullish tone in the pair appears to have run out of steam around 104.00 levels. Dovish comments from Fed’s Evans may have taken the wind out of the dollar bulls.

USD/JPY Technical Levels

Acceptance above 104.00 would expose stiff resistance around 104.32 (September highs), which if breached would bring in fresh bids and open doors for 105.00 handle. On the lower side, a breakdown of support at 103.57 (session low) would expose 103.06 (Sepo 9 high) and 102.81 (previous day’slow).