The pair is trading down to its lowest in seven weeks as sellers are now looking to solidify a push below the 133.00 level on the day. From a technical perspective, the break back below 135.00 yesterday was a catalyst for a bigger move and we are seeing that take shape now.
The fact that the bond market is also hinting that yields are on the verge of a bigger drop is only helping to vindicate the current sentiment in USD/JPY. From earlier:
"It's tough to fight the mood in USD/JPY now when the bond market is sending a clear signal that yields might very well break down lower. The next key daily target for USD/JPY is the 132.00 mark with the 16 June low at 131.49 also in focus. A break below that will then put the focus back on 130.00 with the 100-day moving average seen nearby currently at 129.95."
Elsewhere, the dollar is also sitting lower across the board with EUR/USD up 0.2% to 1.0215 and GBP/USD up 0.2% as well to near 1.2200 ahead of European trading. AUD/USD is also up 0.3% and contesting the 0.7000 handle.
