USD/JPY is down 60 pips to 101.55 today. It’s the lowest since April 14 but the bond market and Nikkei are signaling a move even lower.
The correlation between 10-year yields, the Japanese stock market and USD/JPY has been high this year and the latest moves in yields point to a test of the 2014 low.
Nikkei (red), 10-year yields (green)
