FX Action: USD-JPY corrected to a 108.98 low
FX Action: USD-JPY corrected to a 108.98 low before finding bids after earlier posting a fresh 10-week high at 109.27. The new high was seen amid a broader bout of dollar gains, evidenced by with EUR-JPY, AUD-JPY and other yen crosses fairing less well, and with the dollar having concurrently posted gains versus the euro and most other currencies. The 14-day RSI momentum indicator is presently at 74.4, above the 70.0 level, notifying that the market has reached overbought conditions relative to the historical price action norms (efficient market advocates would argue that these indicators are right until they're wrong). The ascent of the 10-year T-note yield to 3% and the BoJ's continued pegging of the 10-year JGB yield to near 0.0% has been fundamentally underpinning USD-JPY, which is a theme that has been true for over the last month during which time geopolitical risks and trade war concerns have abated sufficiently to allow the yen's safe haven premium to unwind. Analysts have been advising following the trend. USD-JPY trend support comes in at 108.40-42.