We're approaching another critical juncture now in USD/JPY and as mentioned here yesterday, the break of daily support at 137.65 to 138.45 is now putting scrutiny on the 135.00 level as well as its 200-day moving average (blue line) at 134.49.
Sellers are looking adamant to push the agenda as the dollar selling picks up with Treasuries also rallying strongly. In that lieu, just be wary that we are also hitting a key technical crossroads in 10-year yields - which is approaching its 100-day moving average at 3.48%, now hovering around 3.53% today.
That matches up (sort of) with the key technical support in USD/JPY in the form of its 200-day moving average at 134.49 and the key risk event to watch for any trigger today will be the US non-farm payrolls report.
Hold above the key level and buyers may look to try and look for a bit more of a consolidation phase after the sharp drop last month. But break below and it will be a quick trip towards 130.00 next for the pair.