The bond market is in focus as yields edge lower | Forexlive

After the FOMC meeting decision yesterday, 10-year yields in the US raced to a high of 4.59% but that didn’t last long. We’re now seeing yields fall back quickly to under 4.51% again. And that is starting to invite a test of a key neckline on the chart, as seen above.

Bonds were offered quite strongly to start the year as broader markets were fearing Trump’s policies ahead of his inauguration. But with tariff fears receding, we are starting to see things turn around a fair bit.

I’d be watching the neckline near 4.50% quite closely as we look to end the week. Even without any major headlines to impact the narrative, a technical breakdown here could offer traders something to work with in the meantime.

In turn, this will also have a say in how USD/JPY plays out with the pair still toying with a potential break below 155.00 this week.

The drop fell under the figure level earlier in the week but rebounded as Trump floated tariffs again on Tuesday here. The bounce coincided with a rebound off the 50.0 Fib retracement level at 153.75, so that will still be a key technical support level to watch out for before the week ends.