USD/JPY searches for first day of gains in six days
It is still too early to be saying what the latest bounce in yields really represents and the same can be said for USD/JPY price action at the moment.
The pair managed to find some support from the 50.0 retracement level @ 109.57 yesterday and the push towards 110.00 now is providing some encouragement for buyers.
That said, they still have to get back above the figure level to be more confident and trading back above the broken trendline support, now closer to 110.20, will provide more conviction to test key near-term levels closer to 110.52-76.
For now, the market seems to be taking some comfort that 10-year Treasury yields are up by 5 bps to near 1.34% but let’s see if European traders conform to that as well later.