USD/JPY hits 4-day low amid falling treasury yields

• The American dollar is feeling the pull of gravity, possibly due to the slide in the treasury yields.
• The 10-year yield fell below its 200-day MA for the first time since November 2017.
• The USD/JPY hit a four-day low soon before press time and could slide further as the 10-year yield is looking south, having witnessed a double bottom breakdown last month. 

The anti-risk Japanese yen is pushing higher against its American counterpart amid losses in the treasury yields.

At press time, the USD/JPY pair is trading at a four-day low of 113.29 - down 0.33 percent on the day - having clocked a high of 113.66 earlier today.

The pair has likely been dragged lower by the 10-year treasury yield, which fell below its 200-day MA of 2.96 percent soon before press time - its first break below the long-term MA in over 12 months.

Notably, the yield fell six basis points yesterday, reinforcing the bearish view put forward by the double top breakdown (confirmed last month) after the US ISM prices paid index showed a sharp drop in the inflation rate in November.

As a result, the yield could drop further to 2.85 percent in the near term, as called by last month's double top breakdown. So, for the USD/JPY pair, the path of least resistance is to the downside.

USD/JPY Technical Levels