Global markets are displaying mixed signals with Asian currencies strengthening against the US dollar, particularly the Japanese yen as JGB yields rise. The increase in Japanese government bond yields suggests potential shifts in Bank of Japan policy expectations, adding upward pressure on the yen. European futures are trading lower, indicating risk-off sentiment that typically favors safe-haven currencies. USD/JPY faces downward pressure as traders digest the combination of rising Japanese yields and deteriorating risk appetite. The mixed performance across asset classes reflects uncertainty about global economic prospects and diverging central bank policies. Technical levels show USD/JPY testing support near 155.50, with a break below potentially accelerating yen strength. Traders should monitor upcoming economic data releases and central bank communications for clearer directional cues in this volatile environment.
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