USD/JPY is fast losing height, dips below 10-DMA

The Dollar-Yen pair turned lower after comments from Fed’s Mester underscored the fact that the central banks remains market dependent.

The pair is fast losing weight and was last seen trading below the 10-DMA level by 113.48 levels.

Treasury yields surrendered gains

The 10-year treasury yield, which traded close to two basis points higher earlier today at 2.445% now trades 2.434%. Moreover, yields have given up gains following Mester’s comments.

Fed minutes eyed

Fed minutes may add more color to the strong words on inflation in the policy statement released on Feb. 1. Traders would also scan minutes for comments on the downsizing of the Fed’s balance sheet.

USD/JPY Technical Levels

A break below 113.24 (5-DMA) would expose the psychological level of 113.00, under which the losses could be extended to 112.62 (Feb 17 low). On the other hand, a lift above 113.73 (session high) would open doors for 114.31 (Feb 16 high). The next major hurdle is seen at 114.87 (50-DMA).