USD/JPY gives back gains
USD/JPY is back to flat on the day at 110.76 after rising as high as 110.97.
Offers at the figure capped the rally right at Friday's high but the larger driver for the selling is likely to be the turn in yields. US 10s are now down 3.7 bps to 1.486%. The dip accelerated after the break of 1.50 as Friday's move in bonds is erased.
For USD/JPY, this is a key resistance area and it's going to take bonds, stocks and risk appetite all working in the same direction to break it. Fortunately for the bulls, there's a positive seasonal risk backdrop in July that should help.
