The weaker PMI data has helped to push the USDJPY lower. The price has now moved below its 200 day moving average at 152.778, and its 100 day moving average at 152.422 (see green and blue lines on the chart above).. The price is currently trading at 152.327.

Staying below those levels keeps the sellers more in control. The next key target area off the daily chart comes against the 38.2% retracement of the move up from the 2024 low. That level comes in at 151.498.

Sellers are taking their shot in the USDJPY off the data. For traders looking for more downside, staying below the 100 and 200 day MAs now is required. A failure and there will be disappointment on the failed break.

Helping the downside is US treasury yields are moving to the downside with the 2 year down -5 basis points. The 10 year is down -9.3 basis points to 4.418%.

Recall 10-year yield reached a high at 4.809% back on January 14, with many thinking 5% was a certainty. The current yield is down to the lowest level since December 18 and is below the 50% of the move up from the December low. On Monday, the 50% was tested after the threat of 25% tariffs in Canada and Mexico. Now the market is reacting to the slower data and hopes for slower inflation.