The AUD is the weakest currencies on the day, and the pair is pushing to a new 2021 low and moves toward the swing lows from October in September 2020.  Those levels come in between 0.6991 and 0.7005. The low price just reached 0.7013. A move below that floor area would increase the bearish bias for the pair.

Sticking to the daily chart, the 38.2% retracement of the move up from the March 2020 low (not shown) comes in at 0.70525. That is the new risk level on that chart. Stay below and the sellers remain in firm control. The low price from earlier in the week at 0.7062 is also a close risk defining level now

USD/JPY has found a bid alongside which is net therefore pushing yen crosses higher.

AUD, EUR, GBP, NZD, CAD all performing .

Fresh news flow is … nothing (apart from what has been posted already)

Omicron fears began to dissipate in Asia trade Monday and that seems to be the case again Tuesday so far.

The US bond market was closed for Thanksgiving but opened again just after midnight GMT and yields fell 3-6 basis points across the curve.

My suspicion is that this is all about worries about the new covid variant but whatever it is, and despite an extremely thin market, it’s dominating price action in everything.

In FX, USD/JPY has fallen 50 pips on the rate move:

Analysts at the bank nominate 115.50 as a level from back in March of 2017.

On a break above 115.50, the topside objective is projected at 116.50 with potential to 117.10.

Central bank policyThe Bank of Japan has a strong bearish bias. WIth Japan struggling with deflationary pressures for years and a large QE program the outlook for the Bank of Japan remains tilted to the downside.COT reportThe fact that the BoJ is likely to remain on hold with their interest rates, while the rest of the world is expected to hike rates has recently resulted in some high levels of selling from asset managers and leveraged funds. Check out the table below:US10Y correlationWith the BoJ so bearish the rate differentials between the Japanese 10y and the US 10 y are usually just seen in the ebbs and flows of the US 10 y. Remember that the BoJ has yield curve control on their bond yields. So, the key point to note is this:A falling US10Y = a rising JPYA rising US10Y = a falling JPYThis correlation is not always perfect as it can ebb and flow, but it is a correlation to be aware of when trading the JPY and in particular the USDJPY. Look at the USDJPY chart below and its close correlation with US10y.Oil pricesRising oil prices is a negative for the JPY as pricier crude take JPY out of Japan. Japan buys most of its oil from overseas and a weak Yen will make those imports more expensive. If oil starts gaining to the upside watch out as this can weaken the JPY

Apart from what has already been posted there is no fresh news.

As a ps. Dalian iron ore is on the up also. This should be a positive for the Australian dollar but so far … nope: