USD/JPY is down for eleven consecutive days now
As the saying goes, the trend is your friend — and that is rather apt for USD/JPY in April trading so far as the pair continues to climb down from its highs near 111.00 to just under 108.00 since the latter stages of last week.
The pair hit a low of 107.65 earlier today as sellers are trying to secure a firm break below the key trendline support (white line) and 50.0 retracement level @ 107.77.
Those are now the key lines in the sand in terms of limiting any further downside potential in the pair. But a break below that region leaves little in the way of a move to 107.00.
Treasury yields have largely been trending sideways since last week but are keeping higher today, with 10-year yields seen up 2.7 bps to 1.584%.
That is arguably helping to keep USD/JPY sellers at bay for now but as long as yields aren't threatening to move back towards the cycle highs and the dollar remains vulnerable, the support levels highlighted will continue to be challenged.
It is going to be a big week with plenty of headline risks to watch out for. As such, we'll have to wait and see where that takes us while keeping one eye on the charts.
