There were different reasons behind the slump, and among them, we may emphasize the impact of 10-years Treasury yields, as well as some regional issues. Firstly, Trump expressed sharp criticism of the trade relations between the US and Japan. Frankly speaking, the US president thinks little of any regional trade partnership, including the Transatlantic Trade and Investment Partnership (TTIP).
Another bad news for the Yen was Mr. Kuroda’s comments. The BoJ Governor told the current was enough to achieve 2% target level. However, the USD-bulls did not manage to keep gains, and the pair came back to its familiar range at the 114.20-25 area. If the pair closes below the 114.00 level, the bears will have a chance to test the 113.60 , especially, given the pullback in Treasury yields.
In case of any risk aversion, the pair will move below the mentioned area.