I'm not going to keep beating a dead horse but with the retreat in bond yields today, it is adding to the downside momentum in USD/JPY at the moment. 10-year Treasury yields are down 4.6 bps to 3.960% and that is keeping a drag on the currency pair, which is down 0.8% or 110 pips to 140.20 currently.
I talked more about the technical considerations here earlier but after the rejection at 145.00 coming into July, the pair is pretty much caught in a big void between that and the 140.00 level. So, we're pretty much just moving towards the lower extreme with the US CPI data in focus tomorrow.
