Exactly Why USDJPY is Falling

USDJPY is down on the day and it shouldn’t be surprising for those of you that have been watching yields. Since the beginning of the year, the USDJPY has had a 90 percent positive correlation with 10 year yields. Today, yields are down and accordingly, so is USDJPY. The big debate in the market is whether yields are rising because of the brighter economic outlook for the U.S. economy or the lack of demand for U.S. Treasuries after Obama announced the cost of his tax plan. It is never so black and white my friends -- always a combination of both.

forex blog Kathy Lien usd/jpy

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