The US Dollar is lower across the board with the drag stemming from a slight retracement in USDJPY price action on the day after the pair hit a high of 129.40, before falling back to 128.40 now.
As the pair gradually approaches the 130-mark, intervention talk is growing, and Japanese officials are continuing to offer some verbal jawboning as seen here. The BOJ is also seen once again having to step in to maintain its yield curve control policy, defending the implicit 10-year JGB yields cap at 0.25%.
Looking at US Treasuries, 10-year yields are up another 2.3 bps to 2.938% now as the surge higher in yields continues to be rather unrelenting. That will in turn apply further upside pressure to yen pairs, so this bit part retracement in USD/JPY is but a light speed bump perhaps. Even when you look at the technical, it hardly offers a dent.
For now, the US dollar is pulled down slightly but nothing too important. Looking forward the US will release its Existing Home Sales and all day today we have the G20 Meetings.
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