USD/JPY seen sidelined near-term – Danske Bank

Valtteri Ahti, Chief Strategist at Danske Bank, sees the pair navigating within the 108.00-110.20 range for the time being.

Key Quotes

“USD/JPY remains highly correlated with the 10Y US treasury yield and saw support yesterday as the 10Y US yield increased”.

“We still see USD/JPY trading within a range of 108-110.20 in the near term, with the 200-day moving average at 110.17 as a key resistance level”.

“In our view, it would require a firm break of the 3% level in the 10Y US yield in order to justify USD/JPY above 110 at this stage”.