10-year Treasury yields also fall to a session low of 3.178%, down 4.9 bps
The greenback remains weak as we head into European trading now and early indications are pointing to continued dollar weakness for the time being as traders continue to digest the result of the US midterm elections.
As for USD/JPY, price is threatening to move below the 100-hour MA (red line) @ 111.11 and that will break the near-term bullish bias in the pair. This comes as yields are continuing to fall on the session as well. However, bids at around the 113.00 handle has proved to be resilient so far today and it's tough to see price break lower considering as the election results are very much in-line with expectations going in.
If anything, I would expect the 200-hour MA (blue line) @ 112.83 to provide a sufficient enough defense for any downside move unless Treasuries threaten to rally much further - which I don't see a good reason for that to happen.
The key level to watch out for in my view will be the daily close and whether it can hold above the July high at 113.17. That will continue to keep the upside momentum intact and further support a continued push back towards 114.00 and a test of the crucial resistance level at 114.50.
