USD/JPY crosses below 142.00 and breaks a four-day upswing as Treasury rates remain slow.

VOT Research Desk

Early on Tuesday, USD/JPY defies the positive four-day upswing by making a new intraday low around 141.80.

The Yen pair does so by tracking the lack of significant data or events, the market’s cautious attitude ahead of this week’s big catalysts planned for publication on Wednesday, and the slow US Treasury yields.

However, the US 10-year Treasury yields record their first daily decline in four days as of press time, falling one basis point to 3.81%, as the Federal Reserve (Fed) officials’ most recent remarks fail to support their prior hawkish stance.

Moving on, a dearth of significant news or events might permit USD/JPY buyers to pause before Wednesday’s significant catalysts. However, the problems caused by the coronavirus combine with the difference in monetary policy between the US Federal Reserve (Fed) and the Bank of Japan (BOJ) to support the bullish tendency.

The USD/JPY bulls are still optimistic as long as prices continue above the 100-DMA level just below 141.00.