Yen’s broad based decline intensifies today on extended rebound in global treasury yields. In particular, US 10-year yield is probably ready to reclaim 1.7 handle later this week or early next week. Germany 10-year yield is flirting with -0.2 handle, while Japan 10-year JGB yield is pressing 0.1 handle.
CAD/JPY and EUR/JPY lead Yen crosses with upside break out. CAD/JPY’s strong break of 88.28 high indicate resumption of the up trend from 73.80. Such rally should now target 61.8% projection of 77.91 to 88.28 from 85.40 at 91.80. That is close to 91.62 long term resistance (2017 high).
NZD/JPY could be the next to break out on the upside as it’s now heading towards 79.19. Firm break there will resume the whole up trend from 59.49. Next target is 61.8% projection of 68.86 to 79.19 from 75.61 at 81.99.
