Firmer US yields have propelled USD/JPY on to the 84 handle today (though we’re dipping at the moment) but traders report very heavy exporter selling interest up to the 84.40 region where we’ve stalled out three times. It should come as no surprise that there are stops above 84.40 and 84.50.
US two-year notes are at 0.59% today, pushing the spread over Japanese government bonds (JGBs) to 0.38% from 0.25% on Monday…
Buyers are seen on dips to the 83.80 area near-term, traders report.
One Japanese bank is reminding clients that last December, US bond yields soared 70 bp in yield… A repeat performance could send USD/JPY skyward…
