USD/JPY has been trading sideways for the most part in European trading today
Near-term price bias remains more bullish after sellers failed at an attempt to move below the 100-hour MA (red line) yesterday. And rising Treasury yields have only continued to support the upwards movement in the pair since the start of September.
However, despite yields breaking higher today (10-year yields move above 3.20% for the first time since 2011) the pair is unable to muster a further upside move with equities sentiment dragging it lower.
And that's the push and pull action seen today. On one side, yields are tempting buyers for a move higher. On the other, softer equities - even that of E-minis - are promoting a move lower.
Keep an eye out on the performance of US equities today. That appears to be the key driver in USD/JPY at the moment in spite of higher Treasury yields. If equities pare losses and yields hold their own, the move higher in the pair may just find some wings to fly.
But at the same time, further upside in yields could start prompting worries in equities and a broader risk off mood will anchor the pair lower as per what we're seeing at the moment. There's a lot of pushing and pulling in the pair as we trade around key technical levels as well, so make sure you stay well aware of what's driving the pair right now.