But considering the better risk appetite in markets, Treasuries would also be bid if they were trading today. 10-year yields dropped to 3.81% yesterday, its lowest in over a month, and in a period where USD/JPY is staying lockstep with the bond market, the pair is also coming under pressure after the softer US CPI data yesterday.
After a modest bounce at the 100-day moving average (red line) since last night, the pair is now back down to the lows for the day and testing the key level again - seen at 140.77. Keep below that and the pressure will be on for sellers to try and take a run towards the 140.00 mark next. As mentioned earlier:
"It's all about the pressure on the 100-day moving average at 140.77 at the moment. If sellers can break through that, the 140.00 mark comes into play next and that will be an especially crucial level to watch. If buyers are unable to hold the line there, we can easily see a much deeper correction back towards the 200-day moving average (blue line), seen at 132.73 currently, in a quick move."
