USD/JPY nudges again decrease with bond yields in focus

The pair is slipping again to 149.50 ranges, holding on the lows for the day after a quick bounce again above 150.00 earlier. The excessive touched 150.30 however was stopped by the 100-hour transferring common. That reaffirms a extra bearish near-term bias nonetheless within the pair, with sellers now pushing the agenda for one more check beneath the determine stage.

Within the greater image, there may be nonetheless some work to get beneath the December lows across the area of 148.65-00. That is a key check for sellers as they appear to stay with the draw back momentum because the flip of the 12 months.

The excellent news is that there is perhaps assist from the bond market, as a key stage can be coming into play for 10-year Treasuries.

10-year yields within the US are actually right down to four.375% and that’s contesting a break of its 100-day transferring common of four.38%:

That is one to be careful for on the week, with yields slipping beneath the early February low of four.40% this week.

All that being mentioned, it may be quite tough in studying into the strikes this week. For one, the chance temper can be wanting extra on the defensive however then we nonetheless have Nvidia’s earnings tomorrow.

Moreover that, Japanese bond yields have additionally hit a little bit of a ceiling after BOJ governor Ueda warned of taking motion in opposition to “irregular” market strikes on the finish of final week. 10-year JGB yields are caught round 1.38% now, effectively down from the excessive of 1.46% final week.

Then, there’s additionally month-end flows to contemplate this week with the greenback temper already preserving quite blended typically.

However as talked about a few occasions final week right here and right here, the trail of least resistance remains to be for a transfer decrease in USD/JPY for now a minimum of.

Nonetheless, as seen above, there now must be that break of the assist area of 148.65-00 to actually speed up any additional draw back pressures within the pair. And which may not come by so simply until the bond market performs ball this week.

This text was written by Justin Low at www.ubaidahsan.com.



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