USD/JPY: Bears to take the helm on a break below 108.90

USD/JPY hovers around 109.40, confined to a tight 20 pips range ever since the day started, weighed by falling US Treasury yields. As FXStreet’s Chief Analyst Valeria Bednarik notes, the pair is neutral-to-bearish in the near-term – key support seen at 108.90.

See: USD/JPY to target the 110.97 March high on Fed tapering hints – Mizuho

US Treasury yields remain under selling pressure and reached fresh one-month lows

“The dollar is under pressure as US Treasury yields continue to fall. That on the 10-year note is currently at 1.51%, its lowest in a month. Meanwhile, equities are also in the red, indicating a tepid market’s mood.”

“Japan published May Machine Tool Orders, which rose a whopping 140.7% YoY, and Money Supply for the same month which was up by 7.9% YoY. The US session will bring minor figures, as the country will publish MBA Mortgage Approvals for the week ended June 4 and April Wholesales Inventories.”

“The main support level is 108.90, with bears taking over on a break below the level.”