USD/JPY is losing height, nears 105.00 handle

The Bid tone around JPY strengthened, pushing the USD/JPY pair lower to near 105.00 handle as the treasury yields retreated on reports of Anti-Trump protests across America.

Treasury yields drop

At the time of writing, the 10-yr yield and the 2-yr yield was down 6.7 basis points and 3.6 basis points respectively. That seems to be weighing over the US dollar.

Moreover, the Anti - Trump protest could have triggered a rise in demand for the safe haven treasuries. However, Yen bulls are advised not to jump the gun, as the December rate hike probability still stands at 81%.

USD/JPY Technical Levels

At the time of writing, the pair was trading around 105.20. The daily low stands at 104.97 levels. A move back above 105.53 (Oct 28 high) would open doors for a revisit to 105.95 (session high), above which a major resistance is seen at 106.54 (July 27 low). On the other hand, breakdown of support at 105.00 would expose 104.63 (Oct 13 high), under which a major support at 104.32 (September high) stands exposed.