USD/JPY chart - Trading View
USD/JPY was trading 0.09% lower on the day at 106.04 at around 03:50 GMT, scope for heading deeper into the supply zone.
The pair erased early gains in the Asian session, slipped lower from session highs at 106.43.
Early gains were led by selloff in US treasuries. Bonds yields spiked amid massive supply and expectations of rising inflation.
''The rise in treasury yields was led by a poor result in the 7-year Treasury note auction and expectations that the Fed may push forward rate hikes,'' noted analysts at Westpac.
That said, rising expectations that the Fed will have to start tapering sooner than preferred keep downside in the pair limited.
Major trend in USD/JPY continues to be bullish. Intraday bearish action is heading towards minor support at 200H MA at 105.66.
Bearish divergence on RSI keeps bias lower. Break below 200H MA could see test of 200-DMA at 105.47.
