USD/JPY falls back towards 110.00 as 10-year Treasury yields hit record low

Technical Analysis

Author: Justin Low | usdjpy

US Treasury 10-year yields fall below 1.30%

US Treasury 10-year yields fall below 1.30%
The pair is moving back towards a test of the 110.00 level as the risk-off mood in the market continues to start the new day. Buyers kept the pair above the figure level and tested the 200-hour MA (blue line) overnight but failed to break the key near-term level.

That keeps the near-term bias more bearish and sellers are finding reason to push the pair lower as we see US 10-year yields hit a record low of 1.292% on the session.

There is a growing fear that the coronavirus outbreak is going to strike the US next and if that comes to fruition, I reckon there could be a real pain trade waiting to happen for the dollar - similar to how the yen's haven status has been called into question as of late.

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