The layers of resistance from 83.60 to 83.72 proved to be too much for USD/JPY which was unable to sustain its gains after reaching 83.79.
US yields are off their highs by a considerable degree late in the day. We reached 2.96% early this afternoon but we are backing off now and are down to 2.91%.
USD/JPY, having absorbed considerable selling earlier today, is now in digestion mode. A few of the late-comers to today’s rally have cut positions with the move back below the old area of resistance-turned-support in the mid-83.50s. Bids are seen on dips to the 83.35/40 area near-term.
