USD/JPY gradually extends decline as Treasury yields remain pinned lower
Technical Analysis
USD/JPY eases to a low of 109.45, its lowest level since 29 March
The low today is now touching 109.45 with the 29 March low @ 109.37 a minor support level to watch, alongside the 61.8 retracement level @ 109.38.
10-year Treasury yields are down to the lows for the day as well, falling 2.5 bps to 1.649% and that is keeping the yen underpinned on the session. The Japanese currency is the best performing major currency so far with USD/JPY marked down 0.4%.
With EUR/USD also threatening a potential breach above its 200-day moving average @ 1.1882, the technicals are starting to shift in favour of being more bearish for the dollar.
The fact that Treasury yields look to have found a ceiling at 1.75% and is stalling below 1.70% this week only adds to reason for a bit of a pullback phase for the moment.
