USD/JPY closed above the 200-day moving average (MA) yesterday, having defended the confluence of rising trendline support and the upward sloping (bull biased) 50-day MA in Asia. The close above 200-day Ma, though encouraging, could be short-lived as the yield differential narrowed in the USD-negative manner. The spread between the US 10-year treasury yield and 10-year Japanese Government Bond (JGB) yield fell more than five basis points yesterday to 279 basis points - the lowest level since May 31. Further, the yield differential is creating a head-and-shoulders bearish reversal pattern, as discussed yesterday. So, ... (full story)