- USD / JPY does not stop rising and accumulates more than two weeks with increases.
- The dollar is boosted by rising Treasury bond yields.
The USD/JPY continues to rise without stopping and is trading in the 149.75 area, the highest level since 1990. The pair continues heading towards 150.00, boosted on Wednesday by a rise in Treasury bond yields.
US stocks are falling and yields have reached levels not seen in decades. The reference to 10 years is at 4.08% and to 2 years it exceeded 4.50%. the advance of the dollar occurs on all fronts.
And there were 11…
The USD/JPY already accumulates eleven days in a row with consecutive daily rises, accumulating a rise of almost 600 pips in that period. The outlook in favor of the dollar, many analysts argue, will remain on the table as the wide divergence in monetary policy between the Bank of Japan and the Federal Reserve continues. While the Japanese monetary authority continues with an ultra-accommodative instance, the Fed is poised to continue with an aggressive adjustment. If this divergence persists, analysts warn that occasional interventions to limit yen weakness will not be successful.
The other question is how far you can go driven by this divergence. The 150.00 zone could be a limit favoring a pullback. Although if there is a break and a confirmation above, it would be expected that the advances continue.
Technical levels
Source: Fx Street
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