10 year yield vs Usd/Jpy

[Gazillionaire]

Is the 10 year yield a leading indicator for usd/jpy or vice versa?
Does anyone pairs trade using these 2 instruments? I have heard fund managers mentioned that these are the 2 more stable instruments to get consistent results but what is the strategy? Mean reversion or something else?

 

[kroxobor]

Is the 10 year yield a leading indicator for usd/jpy or vice versa?
Does anyone pairs trade using these 2 instruments? I have heard fund managers mentioned that these are the 2 more stable instruments to get consistent results but what is the strategy? Mean reversion or something else?View attachment 278496

You can try to regress returns of US10Y to JPY returns with a lag to test that hypothesis. Visual overlaps gives you just an idea that connection between two variables exists but I don't recommend to use to accept it without proof.