USDJPY eyeing up another test of 112.50

The dollar has ben at the mercy of bond yields once again

Yen buying was the play in Asia as the BOJ cut bond buys, and no let up through Europe
US 10yr yields took a look at 2.50%, possibly in conjunction with JGB selling. Less of a free lunch offered if the BOJ isn’t buying as much
Run up in US yields helped USDJPY to a European session high of 112.97 but offers lurking signalled a top. 55 DMA at 112.94
Through 113.00, 113.20 is next resistance followed by 113.35/40, 113.55/60 & 113.70/75
Resistance may now be building around 112.80/85 (55 & 100 H4MA’s 112.82/85)
US treasury yields drift back to 2.48% helping USDJPY soften
Support showing currently at 112.60/65 (200 H4MA 112.58) ahead of old S&R level at 112.50 which marked the day’s low low. Bids lurking.
Next support at 112.38 (200 WMA),112.20 (55 WMA), strong at 112.00/10 (100 DMA 112.10)
1.01bn option expiry at 113.00, light over/under big figure
Once again vols low with 1m ATM dropping below 6.00 briefly earlier today to 5.93 to mark a new multi-year low
Data light also with only US JOLTS on the cards

USDJPY H4 chart

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