- The dollar appreciates against the JPY, EUR and GBP.
- Bullish tone of the greenback at risk due to a slight drop in Treasury bond yields.
- No big data ahead, focus on Ukraine and the bond market.
The USD/JPY is rising at the start of the week, at a moderate pace and still unable to break out of Friday’s range. The pair recently posted daily highs at 122.83, after falling in the Asian session as low as 122.25.
The boost to USD/JPY is given by the advance of the dollar against its main rivals. The DXY rises for the third session in a row and trades at 98.90, a gain of 0.34%. The index remains in the high zone despite the fact that Treasury bond yields have fallen in the last hour. The 10-year rate went from 2.42% to 2.38%.
The The market is still attentive to news from Ukraine and also what is happening in the Treasury bond market with the inversion of the yield curve. The only impact report for Monday is for February factory orders.
the market of japanese bonds also has great attention. The Bank of Japan’s announcement to continue controlling the curve is becoming difficult and with implications for the yen, in a world where interest rates are going up. The Japanese 10-year rate yields below 0.25%.
The disparate performance of US and Japanese yields has been the main driver of recent USD/JPY gains. This feature is still present and offers great support to the pair’s pullbacks. If it exceeds 123.20, the price could go looking for 125.00 again. While below 121.30, it could extend the correction initially to 120.60 and then 120.00.
Technical levels
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
