- The dollar remains firm at the beginning of the week.
- Treasury bond yields remain at monthly highs supporting the dollar.
- Low in bags limits the fall of the Japanese currency.
USD/JPY is rising for the fifth day in a row after managing to return above 137.00 in the early American session. The pair bounced off 136.66 and is trading at 137.20.
Hours ago, USD/JPY had risen to 137.42, the highest level since July 27. The uptrend remains firm. The next strong resistance can be located around 137.90. On the downside, only at 135.50/60 does a relevant support appear.
Between risk aversion and the strong dollar
Equity markets are falling on Monday on fears about the economic outlook. This is usually positive for the yen, but the strength in the market is limited precisely by the rise in USD/JPY.
Dollar is rising against G10 currencies supported by sustaining Treasury yields in areas of monthly maximums. The expectation that the Fed will continue to aggressively tighten monetary policy is supportive of USD/JPY.
A rise in the Chicago national activity index from -0.25 to 0.27 was known on Monday. The key event of the week will be the Jackson Hole symposium where the world’s top central bankers will speak from Thursday, including Jerome Powell on Friday.
Technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
