Chart Analysis: USD/JPY

Monday, December 7, 2009

The reaction in the bond markets to the strong US employment data is providing support to the recent rally in the USD/JPY pair. The pair is within strike of 90.00 after the data and talk of a return to the downward spiral in the pair during the past few months has all but dissipated.

Bonds are also showing signs of recovering in support of this rebound theory, the 10 year US bond, the benchmark of all the US debt instruments, is inching higher and approaching the 3.5% yield level after a false break below the 200-day moving average in yields recently.

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