Dollar selling takes hold

The US bond yields are falling and pulling down USD/JPY with it as the market prices in Federal Reserve rate cuts.

The US 2-year yields is down 10 basis points to 1.38%, which is a fresh cycle low. That doesn't bode well for USD/JPY. Technically, the double top at 108.50 is also negative sign. With today's break lower, the pair has cut through 107.00 support and confirmed the top. The measured target 105.50.

Dollar selling takes hold