- The dollar continues to advance against the yen supported by the bond market and optimism in the markets.
- USD / JPY very close to 116.00, above next strong resistance at 116.45.
The USD / JPY is rising for the fifth day in a row and instead of moderating the advance, it is accelerating it. After breaking above 115.30 and 115.50, the pair gained momentum. It recently picked up the raises and is trading at 115.93, the highest level since January 2017.
The key factor behind the upward acceleration is the jump in Treasury yield, with several legs of the curve at month and year highs. The expectation of a monetary adjustment by the Federal Reserve is behind these movements. The 10-year rate exceeded 1.60% and the 30-year rate 2%.
Another factor driving USD / JPY is optimism in the markets.. Wall Street on Monday reversed losses and on Tuesday, the futures of the main indices point to a positive opening with increases on average of 0.31%.
The economic calendar shows the US manufacturing ISM report for Tuesday, which may be relevant. On Wednesday it will be the turn of the ADP private employment report and the Fed minutes, while on Friday the non-farm payrolls will arrive.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
