News & Analysis on the Japanese Yen FX with a Low Yield Outperforms The USD/JPY crosses a clear trendline. Breaking News: The Bears Are Vulnerable As US rates continue to fall, safe-haven currencies are beginning to gain traction, requiring a rethink of the widely held short low-yielding FX position. A significant decline in the US 10-year Treasury note, which now yields 1.26 percent, down from 1.52 percent at the start of the week, points to the 200DMA at 1.2371, restricting downside for both the CHF and the JPY. As US yields fall, the CHF and JPY outperform. Refinitiv is the source of this information. According to CFTC data, speculators presently have a big short position in the currency, and while some unwinding of bets has certainly played a role, JPY bearish may be in for more suffering. The move lower in USD/JPY overnight appears to have been worsened by a clean technical breakthrough of the rising trendline that has been in place since the beginning of the year, with the 50DMA (109.77) holding for the time being. However, if this level is reached, it unlocks the door to 109.00-10. Resistance is found at 110.50 on the upside. USDJPY Yield vs. US 10-Year Yield Refinitiv is the source of this information. Refinitiv USD/JPY Chart: Daily Time Frame
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