Bank of America Merrill Lynch remains bearish USD/JPY and continues to think that the correlation between US Treasury yields and USD/JPY is breaking down. "We are bearish Treasuries and, as of yesterday, short TYU4. Looking across the Treasury Curve, 5yr, 10yr and 30yr yields have reached levels from which we look for a yield base and resumption of the larger bear trend.. While we can’t rule out a deeper probe of these levels, particularly if USD/JPY closes below the 200d (now 101.68/69), we must stress that we do look for these Treasury levels to hold and the larger bear trends to resume," BofA clarifies. "Please ... (full story)