USDJPY moved lower as US rates move lower with the 2-year yield trading at 4.646%, down -6 basis points. The 10-year is at 3.720%, down -7.5 basis points.

As for USDJPY, the pair broke above the ceiling of the key swing area between 140.22 and 140.44 in the Asian session and then above the double top of May 29 and May 30 at 140.924. Prices climbed as high as 141.497 before turning all the way back down to retest the aforementioned swing area.

The USDJPY price is also now testing the 38.2% retracement of the move up from the May 31 low. This level comes in at 140.322 and that is where the price has stopped for now.

Will buyers come against the old cap/retracement level?

That’s the short-term question traders will be asking themselves. If the price holds at 140.22, a spin back above the double top at 140.924 would be the next top target as buyers try to recover from the earlier breakout today.

Conversely, a move below 140.22 and buyers are likely to turn to sellers on a failed breakout and focus will return to the rising 100-hour moving average at 139.851 currently.