USD/JPY drops to the lows of the day
The enthusiasm in USD/JPY after non-farm payrolls has been erased and the pair is at the lows of the day, down 22 pips to 113.54.
The catalyst for the decline has been the decline in long-dated US yields, in a continuation of the trend since the FOMC and BOE decisions.
Today, US 10-year yields are down 3.4 bps to 1.49% and are at the lowest since October 5. The past few weeks look an awful lot like a head-and-shoulders top.
