Stocks back toward unchanged
The US stock indices have moved back toward unchanged on the day after being down as much as -0.94% for the S&P and -1.24% for the Nasdaq. Of course bond yields have also reversed with the high yield at 2.363%. The current yield is back down toward 2.25%.
The USDJPY has not exactly followed the bond yields in the US as the pair has been more down on the dy So traders who are following yields and the USDJPY are likely frustrated. Is it following stocks? Maybe. Maybe not. The fall did lead to a lower dollar earlier (or so it seemed). The rally off the low has not seen much of a rebound, although we are seeing a little more positive reaction.
What may be at play is some buying against the risk defining support level defined by the 100 and 50% retracement level. That level defines and limits the risk for traders (see earlier post). The 120.00 area would be the next targets to get above. The 120.02 is the midpoint of the day's trading range.