Globally the theme of Central Bankers tightening monetary policy is well captured with German yields hitting new yearly highs. Interest rates are rising all across the Globe and emerging markets need to make note of this. Yields could be testing 1% in the coming months if crude continues its upturn.
USDJPY has broken important technical levels @ 112. Targets are 110.5/109. Break of 107.5 will put security in firm downtrend. Stop for this trade around 114.5. Fundamental news is JPY bullish with the BOJ attempting to push up yields.
Bank Nifty is testing gap area support and could move lower to the 25000/25100 zone in the coming weeks. Fundamentally news of additional Govt borrowing is not helping yields which have moved up to 7.38% (10 yr). If it manages to break above 25700 the trend may change to bullish.