⚖️💱USD/JPY, Rates Correlation Broken In The Short-Term: Cable FX Macro

**As seen In Macro Walk report 11/17/23, subscribe at cablefxm.co.uk/reports

• The USD/JPY exchange rate seems to be lagging yields, the former have seen a decline over last week while the exchange rate has remained relatively stable

• USD/JPY is trading heavy but a quick look to rate differentials and U.S. yields point to further downside. In fact, the cross-asset correlation in our Macro Walk report shows dollar-yen/5-year yields correlation turning negative over the last 20-days vs 100-day coefficient of +76%

• If we would bet for the short-term correlation to come back while Treasury yields extend declines, we would expect USD/JPY moving closer to 145.0