USD/JPY: Hostile Intermarket Backdrop To Be Long Commited

The micro slopes in the DXY and the US bond yields (US30Y as reference) indicate unfriendly dynamics for further upwards extensions.
The macro bullish trend in the DXY paired with bullish equities underpins the downside as demonstrated by the ‘buy on dips’ mentality off the ascending trendline.
The move up has been slow in nature, which is indicative of what’s often referred to as corrective order flow. A break of the ascending trendline may see the next bear cycle initiated with impetus justified if the DXY + US30Y bear micro slope can prevail.
The recent directional ‘risk off’ or ‘risk off’ movements in our RORO model have led to a significant decoupling of the DXY as a key driver of this market near term.