USD/JPY continues to garner support on two related fronts: a strong rise in US bond yields (10s now yield 2.64% from 2.42% on Tuesday) and a fall in risk aversion. Equities are up 1.25% and commodities are up 0.9%.
It’s sort of the best of both worlds for the market today from Bernanke. He implied the US needs no immediate additional QE but he is ready to break the glass and pull the level if it becomes necessary.
Downtrend resistance lies at 85.30 on the hourly charts and closer to 85.40 on the dailies…
