A perfect storm for USD/JPY weakness is a decline in yields and a stocks. That's exactly what is unfolding.
US 2-year yields are now down 13 bps to 2.58% while the S&P 500 is down 32 points but bouncing all over the place.
The USD/JPY hourly chart shows the latest downtick but also highlights nearby support. I would have thought that the risk mood today would lead to a stronger challenge of the downside, especially with highly overbought indications in USD/JPY but there's still some breathing room.
