USD/JPY peeps above 200-day MA despite weakness in T-yields

• USD/JPY rises above 200-day MA of 111.70
• Treasury yields drop.

The bears loosened their grip in Early Asia, allowing for a technical recovery in USD/JPY.

The currency pair took out the 200-day MA hurdle of 111.70 a few minutes ago and was last seen trading at 111.80 levels. Meanwhile, the 10-year treasury yield is fast losing altitude, now trading at 2.53 basis points; down 2 basis points on the day and 7 basis points from the previous day's high of 2.6 percent.

The decline in the yields could make it difficult for the pair to hold above the 200-day MA. That said, the pair may extend gains if the European and US equities regain bid tone. Also, European/US desks may buy US dollars as China reportedly has no intention of halting/trimming treasury purchases.

USD/JPY Technical Levels

A sustained move above the 200-day MA could yield 112.21 (100-day MA) and 112.39 (5-day MA). On the downside, breach of support at 111.32 (session low) would open doors for a sell-off to 111.00 (zero level) and 110.84 (Nov. 27 low).