The pair is down another 0.6% today to 147.46 currently, with the low earlier touching 147.25 and testing minor support at around the 147.30 mark. The key level to watch amid the downside push right now is still the 100-day moving average (red line) at 146.55 currently as that will set the tone for whether or not the upside momentum since July will be broken.
For now, the retreat in Treasury yields and the dollar's fall alongside it is continuing to drive price action lower and a push towards 145.00 isn't out of the picture in my view. The greenback is in a rather precarious position as there are technical breaks in most dollar pairs right now and that's suggestive of a further decline in the currency.
And if the bond rally continues to gather legs, that will set the pace for USD/JPY to keep pushing lower. If the drop today holds, it will mark the fourth straight day that the pair has eased lower since the end of July. And that is telling about the greenback's waning prowess at the moment.
