USD/JPY drops to the lows of the day

The enthusiasm in USD/JPY after non-farm payrolls has been erased and the pair is at the lows of the day, down 22 pips to 113.54.

USD/JPY drops to the lows of the day

The catalyst for the decline has been the decline in long-dated US yields, in a continuation of the trend since the FOMC and BOE decisions.

Today, US 10-year yields are down 3.4 bps to 1.49% and are at the lowest since October 5. The past few weeks look an awful lot like a head-and-shoulders top.

US 10 year yields