This carries over the conversation from earlier this week here. And as yields continue to trend sideways, it is still leaving traders with more questions at the moment.
10-year yields in the US are trapped between the 4.20% mark and its 100-day moving average at around 4.315% currently. And that technical net looks to be trapping FX traders as well for the most part.
The dollar has been rather indecisive in trading this week, with USD/JPY especially just running in between 150.00 to 150.80 mostly over the past two weeks.
Month-end flows will be a consideration today and tomorrow. However, if that doesn't lead to anywhere in Treasury yields, I'm afraid that's not going to offer much help for the dollar to get unstuck as well. At least that will be the case for trading this week.
