USD/JPY climbs towards 131.00 on yen weakness

• The yen among the worst performing currencies on Monday.
• Sovereign bond yields rise and BoJ minutes put downward pressure on the yen.
• USD/JPY rises strongly for the second day in a row.

The USD/JPY is rising again and after the start of the American session it is trading at 130.80, at maximums since January 18. The pair is being driven mainly by the weakness of the yen on Monday.

The Japanese currency is under pressure from rising sovereign bond yields on both sides of the Atlantic. This occurs given the continued rise in interest rates by the main central banks.

In turn, the minutes of the December meeting bank of japan they showed internal discussions for the decisions. Also including concerns about the impact of the decision to widen the upper end of the range of the yield control curve. Officials feared the shock and a misinterpretation of the decision. This is seen as reinforcing the ultra-accommodative policy continuation position. At the next meeting, last week, the BoJ did not introduce any changes. Since then, the yen has lost strength.

USD/JPY is just below the 20-day moving average, which passes through the 131.00 area. A confirmation above would point to more rises. The current bullish tone would be negated on a drop below 129.00.

technical levels