USD/JPY daily chart
This certainly remains an interesting situation for USD/JPY, with the price trend currently moving back towards the 200-day moving average (blue line) at 143.17. A break below this level will likely give sellers some technical momentum back, but it is too early to take that for granted.
The US dollar is generally slightly weaker today, with resource currencies benefiting as risk mood improves. European and U.S. futures are up slightly, looking for a slight rebound from the wild past two days.
This follows a significant development in the bond market overnight, with the US 10-year bond yield rejected at the 4% level. The yield currently remains around 3.90%, with little change on the day. Is this a clear enough signal that the retracement from earlier this week has lost momentum?
There are still some risks in the data for traders to consider as the US jobs report is released tomorrow. Needless to say, European inflation figures will also be released today and tomorrow.
