USD/JPY is faltering this morning after profit-taking set-in after EUR/JPY reached 120.00 overnight but could not hold above that hurdle. US yileds are easing further this morning, reversing some of last week’s gains as hopes for a tighter Fed by the end of 2011 fade. 2-year notes are at 0.78% after touching 0.90% early Friday morning.
Support is solid in the 83.60 area where the 200-day moving average and the trendline drawn off the December highs converge.
