FxWirePro: USD/CNY consolidates around 7.298, maintains bullish bias

• USD/CNY strengthened   on Monday  as widening yield differential between the U.S. and China continued to exert pressure on the yuan  .

• Yields on China's long-term government bonds, including the 10-year, 30-year, and 50-year bonds, all reached record lows during morning trading, further widening the yield gap with the United States.

• The U.S.-China yield differential grew to its biggest level in 22 years last week. This yield difference led traders to chase the dollar in an attempt to increase gains.

• At GMT 10.22,the dollar was up 0.04% at 7.298 against Chinese Yuan .

 •  Immediate resistance is located at 7.301(23.6%fib), any close above will push the pair towards 7.313(Higher BB)

• Support is seen at 7.285(Dec 19th low) and break below could take the pair towards 7.254(38.2%fib).

Recommendation: Good to buy around  7.290 with stop loss of 7.240  and target price of 7.340