Recovery On Treasury Bonds Signals Temporary Top On USDJPY
Jun 23, 2022

ZN - 10Y US NOTES USDJPY

Hello traders, today we will talk about treasury bonds (10Y US Notes) compared to negatively correlated USDJPY currency pair, as we see some interesting reversals.

10Y US Notes (treasury bonds) is in a massive decline in the last couple of months and this is the reason why USDJPY is so high. However, looking at the 4-hour chart, we can now see that 10Y US Notes is in strong recovery mode, which has just caused a reversal down on USDJPY pair after both assets completed five-wave cycle from Elliott wave perspective.

USDJPY vs. 10Y US Notes
USDJPY vs. 10Y US Notes

Well, from technical point of view, we believe that 10Y US Notes may face even bigger recovery, at least up 120’30 level, which will most likely push USDJPY at least back to the former wave (4) support and 131.50 area, if not even deeper, if stocks start recovering, down to a higher degree wave 4 and 126.30 support zone.

Happy trading!

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