At least we got a bit of a move early in the day, and USD/JPY has had its moments, but it seems like we have a quiet afternoon ahead of us.
US Treasury yields are firmer again after this morning’s mixed data, with USD/JPY traders watching them particularly closely. A close above the 1.766-1.783% area will be key for a further back-up in rates. Higher rates tend to be supportive of USD/JPY as yield-hungry Japanese investors tend to buy dollars when Uncle Sam pays better rates than they can pick up at home.
