USD/JPY down 0.4% to 112.70 levels on the day
There was a shove lower late yesterday and sellers are working with that as bond yields also retreat rather strongly to get the new day going. 2-year Treasury yields are down 3.4 bps to 0.415% while 10-year yields are down 2.8 bps to 1.469% currently.
That alongside the daily break below the recent support at 113.25-40 has seen an extended push lower in the pair, as the yen leads the charge in the major currencies space.
There's a whiff of risk aversion in the air with the franc also advancing slightly but there's nothing untowardly among commodity currencies - for now at least.
Going back to USD/JPY, the drop now brings into focus the 38.2 retracement level of the September to October swing move higher @ 112.56. But given the technical breakdown, a push towards the 50.0 retracement level @ 111.90 and 112.00 looks plausible.
As such, that is also likely to lead yen pairs lower across the board unless the bond market starts to turn around again and the latest squeeze comes to a halt.
Otherwise, the technicals are starting to shout at a decent correction/reversal after the surge higher in trading last month.