Treasuries helping to push USD/JPY higher
The bond market is beginning to have second thoughts on how much the Federal Reserve will cut rates. Either that or there is worry the G20 could have a better outcome.
The gains in USD/JPY come with US 5-year yields up 7 basis points to 1.79%. That erases the past two days of losses.
Technically, the climb above the intraday high and the June 20 high is a good sign for a further retracement. The US dollar bears got a bit ahead of themselves in the short-term and we’re seeing a retracement.
At some point before Friday, I expect the worries to kick back in.