- The yen remains under pressure due to the rise in Treasury bond yields and the monetary policy spread.
- Dollar Index hits new cycle highs above 110.50.
- USD/JPY is approaching 145.00.
USD/JPY is trading at 144.80, the new high since 1998, in an unstoppable run. In two days the pair has risen over 400 pips and is looking at the 145.00 zone. It is the third rise in a row and for the eighth time in the last nine days.
The yen is having the worst year in its history. The monetary policy spread between the Bank of Japan and the rest of the central banksmainly the Federal Reserve remains a negative factor for the Japanese currency.
Treasury bond yields operate in the zone of maximums in months or years. The 30-year tranche is at the highest level since 2014. The Dollar Index (DXY) climbed to decade highs and trades at 110.50.
The prolonged and accelerated rise of the USD/JPY brought back speculations about a possible intervention to limit the depreciation. Finance Minister of Japan expressed concern about “one-way” moves in the forex market.
The focus will be on the statements of BoJ officials for these hours. In addition, US foreign trade data will be published and several Federal Reserve officials will speak.
Technical levels
Source: Fx Street
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