USD/JPY pares early advance as dollar flails after yields setback

<p>That is certainly keeping things interesting for USD/JPY, with price action now returning back towards the 200-day moving average (blue line) at 143.17. A push back below that will see sellers seize back some technical momentum but it is still early in the day to be calling that to be a given.</p><p>The greenback is a touch lower across the board today, with commodity currencies benefiting amid a better risk mood. European and US futures are slightly higher, looking to bounce back a little after the beating in the last two days.</p><p>That comes after a significant development in the bond market overnight, which saw US 10-year yields get rejected at the 4% mark. Yields are now keeping around 3.90%, little changed on the day. Is that a clear enough signal to say that the retracement from earlier this week has run out of steam?</p><p>With the US jobs report coming up tomorrow, there's still some risk in the data for traders to consider. Not to mention, we also do have European inflation numbers coming up today and tomorrow.</p>

This article was written by Justin Low at www.forexlive.com.