USD/JPY is grinding higher as the risk aversion seen earlier in the day has gone by the boards. Stocks are higher, bonds are lower and oil has clawed back most of its earlier losses.
US 2-year notes have bounced back in yield to the 1.06% level from 1.02% earlier in the day. 10s are now at 3.88% from 3.84%.
We seemed to have lost our fear the the JPY will strengthen along with the CNY, which the market expects China to announce in the next few weeks. At least for now.
93.40 is near-term resistance for USD/JPY.Stops are seen above the 93.50 level.
