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- Japanese Yen consolidating near make-or-break levels versus US Dollar

- Strong link to yields suggests recent moves in bonds favor the downside

- Watch for any sudden breakdowns on acceleration below ¥101.50

The US Dollar trades at potentially critical levels versus the Japanese Yen. Why might the USDJPY tumble to fresh lows, and how might we trade it?

Follow any updates on the British Pound, US Dollar, and other currencies via this author’s e-mail distribution list.

Dollar Trading at Potentially Critical Levels versus the Japanese Yen

Dollar Nears Potentially Significant Breakdown versus Japanese Yen

Source: FXCM Trading Station Desktop, Prepared by David Rodriguez.

Correlation to US Treasury Yields Underlines Key Risk to USDJPY

Dollar Nears Potentially Significant Breakdown versus Japanese Yen

Data source: Bloomberg, Prepared by David Rodriguez

US 10-Year Treasury Yield Testing Significant Support as Moving Averages Show Bearish Shift

Dollar Nears Potentially Significant Breakdown versus Japanese Yen

Source: TradingView.com, Prepared by David Rodriguez

Large Speculative Traders Remained heavily Long USDJPY, Warning of Sentiment Extreme

Dollar Nears Potentially Significant Breakdown versus Japanese Yen

Source: CFTC Commitment of Traders data, Prepared by David Rodriguez.

Follow any updates on the British Pound, US Dollar, and other currencies via this author’s e-mail distribution list.

Forex Correlations Summary

View forex correlations to the S&P 500, S&P Volatility Index (VIX), Crude Oil Futures prices, US Treasury Yields, and Spot Gold prices.

Dollar Nears Potentially Significant Breakdown versus Japanese Yen

Data source: Bloomberg. Chart source: R SEE GUIDE ON READING THE ABOVE CHART

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