USD/JPY and Treasury yields break through key retracement levels

USD/JPY has cut through the 61.8% retracement of yesterday’s fall. This is a bit of a tricky one to draw but the rule of thumb is that if the 61.8% level breaks, it will complete the retracement and given the tailwinds for USD/JPY, I think that’s the case.

For confirmation though, watch yields. I’m less confident that US 10-year yields will make it all the way back but they’re right around the 61.8% level and 30-years have almost completed the round trip.