USD/JPY revisited an intraday low near 141.80, breaking a four-day bullish trend. The move reflects low U.S. Treasury yields in the absence of major data or events, as well as cautious sentiment ahead of key factors for the week due to be released on Wednesday.
U.S. 10-year Treasury yields fell for the first time in a single day in 4 days, and are now around 3.81%, as the latest remarks from Fed officials failed to support the previous hawkishness.
The U.S. dollar index DXY fell to around 107.55, ending a three-day winning streak. Next, in the absence of major data and events, USD/JPY buyers may take a breather before important news on Wednesday. However, the monetary policy divergence between the Federal Reserve and the Bank of Japan, coupled with the coronavirus pandemic, favors a bullish bias.
