We’ve had a minor flush out to 101.70 and the bottom of the 2014 channel.

USD/JPY daily chart 06 05 2014

USD/JPY daily chart 06 05 2014

There’s not a lot under here until support at 101.18/29 and then the 200 dma at 100.94. Bids at 101.60 and 101.50 could well hamper any further push lower before the US come online. I still don’t see the pair moving out of it’s range too much but I’m still wary of the recent reaction to the positive US data, as I warned yesterday.

As we go into the yank session US 10’s are sitting pretty above 2.60% at 2.616% having been up to 2.62% and we’re looking flat in stock futures.