Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
Japanese Yen Forecast: USD/JPY Tracks Plunging US Rates, JPY Bears Vulnerable

Japanese Yen Forecast: USD/JPY Tracks Plunging US Rates, JPY Bears Vulnerable

Justin McQueen,

JPY Price Analysis & News

  • Low Yield FX Outperforms
  • USD/JPY Makes Clean Trendline Break, Bears Vulnerable

Safe haven currencies beginning to pick up the pace as the slide in US yields persists, prompting a re-think on the consensus short low yielding FX trade. A rather sizeable move in the US 10yr, which now yields 1.26%, down from 1.52% at the beginning of last week and thus eyes the 200DMA at 1.2371 and thus limiting downside for both the CHF and JPY.

CHF & JPY Outperform as US Yields Plunge

Source: Refinitiv

Taking a look at CFTC positioning data, speculators currently hold a large short position in the currency and while some unwinding of positions has likely played its part, there could be some more pain ahead for JPY bears. A clean technical breakthrough the rising trendline that has been in place since the beginning of the year looks to have exacerbated the move lower in USD/JPY overnight, the 50DMA (109.77) holding for now. However, should this level, this opens the doors towards 109.00-10. On the topside, resistance resides at 110.50.

USDJPY vs US 10Y Yield

Source: Refinitiv

USD/JPY Chart: Daily Time Frame

Source: Refinitiv

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.