The USD/JPY continues with the strong rise of the last few days, rising about 60 pips this Monday until reaching in the middle of the Asian session its highest level in five years and two months at 117.87.
The pair, which maintains the strong bullish tone at the European open, is trading at 117.71 at time of writing, gaining 0.40% daily.
The dollar continues to benefit from the climate of uncertainty in the markets due to the invasion of Ukraine by Russian troops. The DXY index that measures the greenback has risen today to 99.29, a new high for the last six days. Another strong promoter of the greenback is the 10-year US Treasury bond yieldwhich today has reached one-month highs around 2.05%.
With no economic data on the US and Japanese calendars at the start of the week, traders will be keeping a close eye on market sentiment and US yields, as well as headlines coming from Russia and Ukraine.
USD/JPY Levels
In case of exceeding the psychological zone of 118.00the pair has room to advance without limitations towards the zone of 118.60/66, where are the maximums of January 2017 and December 2016, respectively. Higher up, the target is at 118.99roof of the year 2016.
On the downside, a break of 117.28, the daily low, could cause an acceleration of the decline towards 117.00 and 116.00, which could find a brake at 115.55, the floor of March 9.
Source: Fx Street
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