- The dollar advances on all fronts, DXY at maximum in decades.
- Yen weak after BoJ warning and after Japanese elections.
- USD/JPY is heading towards 138.00, support at 137.30.
The USD/JPY accelerated the upward run and surpassed 137.30 jumping to 137.74, the new maximum since September 1998. The pair maintains the bullish moment in a context of strength of the dollar and despite the drop in Treasury bond yields. .
BoJ, elections and inflation is coming
The Governor of Bank of Japan he said on Monday that the economic outlook remains uncertain and that the central bank will do whatever it takes to grow the economy. He confirmed that interest rates will remain at current levels or lower.
Over the weekend in the Asian country, legislative elections were held that ended in an official victory. They were marked by the murder of Shinzo Abe.
In the US the economic calendar is light on Monday. The key data of the week will be on Wednesday with the US inflation data for June. On Tuesday, Janet Yellen, the US Treasury secretary, will meet with her Japanese counterpart.
Technical levels
Source: Fx Street
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