USD/JPY revisits 106.00 despite flat treasury yields

The bid tone around the US dollar gathered pace in Asia, pushing the Dollar-Yen pair to a session high of 116.12 despite the flat action in the treasury yields.

At critical resistance

The double top neckline of 116.04 levels (now a resistance) is being put to test, although the move lacks a clear catalyst, given the 10-year treasury yield and the 2-year treasury yield was last seen trading largely flat on the day around 2.373% and 1.182%, respectively.

Ahead in the day, the dollar demand is at the mercy of the December wage growth number and the unemployment rate.

USD/JPY Technical Levels

Having clocked a high of 116.12, the spot retreated to 115.90. An hourly close above 116.04 (neckline resistance) could yield a rally to 117.00 (Dec 26 low), above which the hurdle at 117.81 (Dec 28 high) could be put to test. On the other hand, a breakdown of support at 115.36 (4-hr 200-MA) would open doors to 114.74 (Dec 12 low) and 114.41 (Dec 7 high).