The dollar is holding steadier to start European morning trade
There were plenty of reasons for the dollar and Treasury yields to perk up in the past few days with the stellar non-farm payrolls report on Friday and the solid ISM services report yesterday being two arguably strong signals for that.
Yet, Treasuries remain more bid and yields fell - easing to 1.69% currently.
That could suggest a potential top at around 1.75% for the time being until the market becomes more convinced, either through more upbeat data or the general undertone, of another leg higher in yields to follow in the weeks/months ahead.
In the meantime, if yields are stalling, that could also see the dollar's short-term strength wane with risk trades also likely to take heart in such developments.
Looking at USD/JPY, price fell to test a confluence of key levels yesterday i.e. 200-hour moving average (blue line), 110.00 handle, and the 38.2 retracement level.
Those are all still key levels to watch at the moment after buyers defended that, with price bias looking more neutral with action confined between the key hourly moving averages.
Despite the push higher in recent weeks, Treasury yields shrugging off the more upbeat data as noted above isn't quite a good sign of an extension for now at least.
