The Treasury market continues to sniff out pain and rate cuts in the US economy and that's spilling into USD/JPY. The pair fell 25 pips in a quick move down to 145.75 after breaking 146.00.
USDJPY 10 mins
Despite the turnaround in risk sentiment, US 2s remain near the low yields of the year and are treatening a fresh break of 4.00%.
US 2y daily
There is some talk about non-farm payrolls downward revisions tomorrow as a catalyst but that's a widely expected shift at this point. Jackson Hole will include something of a dovish shift but that's also widely expected.
The bond market may be looking at sagging global growth and betting that it will boomerang back in to the US. That said, that kind of price action doesn't really square with a weak dollar.