Once again, just when you thought we might be in for a calmer trading today, there just had to be a twist and it now comes right before we get into North America trading. Bond yields are on the retreat with 2-year yields in the US falling to the lows for the day, down 5 bps to 4.08% while 10-year yields are down 10 bps to 3.48%. This is taking USD/JPY down with it as the pair is down by over 100 pips now to 132.50 levels:
The pair has been struggling to get above its 100-hour moving average (red line) earlier today and this is keeping sellers in near-term control, with sentiment in the bond market vindicating the technicals.
Elsewhere, equities are also starting to come under pressure with European indices paring all of its earlier gains and US futures dropping into the red as mentioned here.
