One technical development that we observed was how USD/JPY
had multiple rejections of 99/101 zone. The strong bounces off this level seemed to be indicative of either intervention from Japan to sell the JPY or unwillingness for institutions to hold long JPY positions against the USD below 101. Either way, the sharp
move higher in US Yields that has helped fuel the USD rally that continues to persist with US/JPY 10Yr Spread near its widest level in a year at -222.5. While there is an expectation that this move will retrace somewhat, the trend may be shifting higher as we look at the charts.