WILD VOLATILITY IN JAPAN - YIELDS FALL
JGB's have collapsed from the highs. Falling over 22% tonight. If this weakness in the Japan yield market continues we should see the DXY eat that up.
this is a weekly chart of the JP10Y. It demonstrates a multi year trendline of resistance for Japanese debt. This chart data only goes back to 2006 however we still have to respect a major trend until proven otherwise.
Perhaps if this reversal completes on the weekly & monthly timeframe, Japan economy could be signaling some risk if a deflationary event were to happen rapidly.
Since BOJ owns most of the Japanese debt (bonds) analyzing this market can be tricky since its theoretically rigged since the buyer is the seller & the seller is the buyer.
this is a weekly chart of the JP10Y. It demonstrates a multi year trendline of resistance for Japanese debt. This chart data only goes back to 2006 however we still have to respect a major trend until proven otherwise.
Perhaps if this reversal completes on the weekly & monthly timeframe, Japan economy could be signaling some risk if a deflationary event were to happen rapidly.
Since BOJ owns most of the Japanese debt (bonds) analyzing this market can be tricky since its theoretically rigged since the buyer is the seller & the seller is the buyer.