Traders report very steady interest to buy USD/JPY o dips toward the 91.00 area but the greenback has shown little propensity to rally. It looks as though the large amount of JPY to be sold for tomorrow’s investment trust launches (toushin) is helping keep USD/JPY from being pushed lower by growing risk aversion and lower US bond yields. US 10-year notes are down to 3.41% in yield from above 3.50% yesterday just ahead of the smashing 2-year note auction. Another huge auction is on tap for this afternoon with $41 bln of 5-year notes up for bid.
90.75 and 90.45 remain supports if USD/JPY loses its bid; 91.35/40 is resistance on rebounds.