USD/JPY stuck at 38.2% Fib, hovers around 112.00

USD/JPY extended the gains seen in the North American session, but the bullish tone ran out of steam near 112.17 (38.2% fib retracement of 115.504 - 110.107).

Treasury yields remain flat lined

The uptick in the Dollar-Yen pair seen this Friday morning lacks support from the Treasury yields, which remain flat lined. The 10-year yield trades largely unchanged on the day around 2.418% and is still below Wednesday’s high of 2.427%.

Thus, it will be interesting to see if the pair holds on to gains, although risk reset and the strong US Q4 consumer spending number released yesterday could keep the dollar well bid.

The pair could revisit stiff resistance around 112.60 if the US personal spending for the month of February, due later today, blows past expectations.

USD/JPY Technical Levels

The spot was last seen trading around 112.00 levels. A break above 112.17 (38.2% fib retracement of 115.504 - 110.107) would open doors for 112.52 (Jan 24 low), above which a major hurdle is located at 112.80 (50% fib retracement of 115.504-110.107). On the downside, breach of support at 111.60 (Feb low) could yield a retest of 111.38 (23.6% fib) and 111.00 (zero figure).