12:32 USD/JPY: Bolstered by Higher US Yields; Topside Stops Loom San Francisco, July 8. USD/JPY has caught a bid this morning after bouncing off lows of 106.25 in London. Stops have been triggered on the move above 106.90 with USD/JPY now at 107.19 and offers looming at 107.19. Traders link the support to the comments from Fed"s Bernanke, calling for more steps to ensure financial market stability and stating that he could offer the lending facility to primary dealers past the end of the year. More stops loom from 107.30 to 107.50 that could add to the USD/JPY gains with support coming from the sharp rise in US bond yields on the Fed comments, with the 2-yr yield nearing 2.46%, up from 2.41% earlier this morning.
The good selling interest at 107.80 to 108.00 remains intact and should temper gains with stops eyed above 108.10.
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The good selling interest at 107.80 to 108.00 remains intact and should temper gains with stops eyed above 108.10.
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