FX Action: USD-JPY is sitting right on top of its 20-day moving average FX Action: USD-JPY is sitting right on top of its 20-day moving average of 123.84, after failing to hold the 124 handle earlier. The pairing put in a base at 123.65 before recovering, though with risk taking levels easier and yields off their highs, a revisit of 124 does not look to be in the cards near term. In the meantime, a N.Y. close over the 20-dma might give technically inclined dollar bulls some cover.
Treasury Action: short yields steadied above lows Treasury Action: short yields steadied above lows following the mixed 2-year auction results, with the current 2-year yield consolidating above 0.67% compared to the 0.692% award rate on the new notes and a range of 0.661-0.686% ahead of the sale. Near-term yield resistance is marked by 0.6935%, with 0.766% above and support from 0.662-0.660% and 0. 609% below.