Falling bond yields and equities is helping to keep the Japanese yen bid
USD/JPY is closing back on a move towards the 110.00 handle as falling Treasury yields and negative tone in equities is helping to keep the yen underpinned ahead of European trading. The pair is now running into the resistance region around 110.15-20 but the key support level will be the 110.00 handle followed by the lows around 109.70-75.
Of note, there are large expiries rolling off at the 110.00 handle today ($1.1 billion) and tomorrow ($1.3 billion). That could play a role in gravitating price action towards the figure handle as markets try and sort out the risk mood this week.
That said, the key theme this week has been falling bond yields and a further run lower in Treasury yields will only serve to fuel further bids in the yen. That is something to be wary of in the sessions ahead.
