The USDJPY continues to correlate closely with movements in the US 10-year yield. After the Hawkish shift in guidance from the Fed last week, the policy normalization fuse has been lit. 10-year yields first reacted by rocketing higher, but then slumped. Some of the reasons swirling around markets for this price action are as follows 1) Inflation will now be contained 2) A risk-off bid 3) Positioning adjustments. I still feel 10-year yields will drift higher from here and this should provide a tailwind to USDJPY. One potential impediment to serious gains like we saw earlier in the year is positioning. Net Specs are ... (full story)