- The Japanese yen is under widespread pressure from risk appetite and rising US yields.
- The DXY rose 0.30% on Wednesday and was down 2.20% in March.
- USD/JPY posts biggest daily gain of the month, up more than 150 points.
After a correction to 131.55, the USD/JPY resumed the bullish path, breaking above 132.00 firmly. He is trading at his highest level in a week at 132.55/60. It has risen 175 points, the biggest daily rise in a month.
The pair has moved throughout the day with a bullish bias. In Asian time he was supported by a broad recovery in the US dollar. More recently, the move to the upside gained speed driven by rising US yields.
The 10-year US Treasury yield hit 3.61% and the 2-year yield rose to 4.14%, both at the highest levels in a week. On Wall Street, US stocks opened with strong gains. The Dow Jones rose 0.70% and the Nasdaq rose 1.30%.
The combination of risk appetite and rising US yields as the banking crisis fades weighs on the Japanese yen. This currency is the worst performer on Wednesday among the most traded currencies.
USD/JPY pair closely watching 133.00
On the daily chart, the pair is above the 55-period simple moving average (SMA), currently at 132.40. To the upside, the next barrier is the 133.00 area. A consolidation above would clear the way for further gains. On the other hand, the 131.80 zone has become the key support.
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technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
