Here we can see the market breaking out of a multi year trend with a confirmed retest. It has held the target for an expanding or running flat from Feb 2017 highs.
For those who are familiar with oscillators you will have noticed the positive divergence. This means it is time to start paying attention as we are forming a base in trend.
The next two levels in play at the 38.2% and 50% retracements. If this truly a 'C' wave from the lows then we have the potential to take out the double top from Feb 2017 and October 2018. Targets on the break come in at 0.153 - 0.165% ... this asset moving will have huge importance for those exposed to Japan.
Best of luck all positioning for the coming moves in Asia.
it really depends on the global macro scene. maybe under positive backdrop theyll allow it to go back up.
the main driver that for the jgb and yen going forth is the sales tax increase possibility in October.
its really interesting watching how the jgb affects yen purchases globally and how that purchase translates into equity volatility.
ridethepig
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@The_dumpster_diver, Smells like the market is testing how much tolerance the BOJ has for deviation from target. As you rightfully mention as long as the Nikkei remains well behaved the correlation between UST and JGB long-end yields will weigh heavier on JPY in the background as trade tensions fade away.
the main driver that for the jgb and yen going forth is the sales tax increase possibility in October.
its really interesting watching how the jgb affects yen purchases globally and how that purchase translates into equity volatility.