The river breached the danger mark of 205.33m on Monday night, and the authorities were expecting the level to go up to 207m by Wednesday.
However, the waters showed a receding trend since the wee hours of Wednesday, a Flood Control Department official told .
"The water level, which was steady at 206.60 metres started showing a receding trend since afternoon. Although water is reducing, the situation is critical and we are keeping a close watch on it," the official said.
The water level was rising due to rain in northern India and discharge of water from the Hathnikund Barrage in Haryana.
"Water is being released from the barrage since Saturday," the official said, adding that Haryana released 8.28 lakh cusecs of water on Sunday evening.
The water discharged from the barrage, which provides drinking water to Delhi, normally takes 72 hours to reach the capital, the official said.
Thousands of people living along the banks of the river were moved to safer places. They have been asked to stay in the tents until the water level comes down to normal.
Rail and vehicular traffic on the Old Yamuna Bridge was suspended as the water level rose.
Delhi witnessed the worst floods in 1978 when the river's level touched a record 207.49m.
Delhi Chief Minister Arvind Kejriwal and Revenue Minister Kailash Gahlot inspected a relief camp at Usmanpur on Wednesday on the east bank of the Yamuna.
Delhi BJP president Manoj Tiwari, who is also a Lok Sabha MP from the city, visited the flood-affected areas of Kisan Basti, Usmanpur and Gadhi Mandu.
( With inputs from IANS )