And more importantly, yields are keeping just above their 100-day moving average (red line). As much as the dollar is showing vulnerabilities across the board from a technical perspective, the bond market will also have a say on how things will play out for the dollar – especially in the case of USD/JPY here.
Right now, we’ve entered the Fed blackout period so there isn’t much for traders to work with. In the context of trading this week, the US PPI data on Friday is arguably the most notable data release. As such, there is a bit of a gap between now and then and that could make for a bit of a tricky period before the big showdown next week (US CPI data and FOMC meeting decision).
In such instances, the charts are the best tool one can use to try and get a grip on things and the level outlined above for the bond market is arguably one of the bigger ones to watch out for going into next week.