- USD/JPY remains firmly uptrend, supported by yields and a stronger dollar.
- The debate increases due to the weakness of the yen.
- With no impact data for Monday, range riding could continue.
The USD/JPY climbed in the Asian session to 126.78, reaching the highest level since May 2002. It then pulled back to 126.21, ending up moving sideways around 126.60.
The dollar continues to be the strongest currency among the G10, with the main support in the expectation of more aggressive rises in the interest rate by the Federal Reserve. Treasury yields hit new highs in years on Monday, before retreating slightly.
measured by the DXY, the dollar rises 0.10%. So far in April, the index only fell one day, gaining ground on the rest of the days. Monday’s rise is accompanied by advances in the price of commodities.
Wall Street futures are trading slightly negative, which may help limit yen weakness. In Europe, the main stock markets are closed on Monday because it is a holiday.
Talk of yen depreciation is intensifying with each new USD/JPY high. The Governor of Bank of Japan He stated that the recent movements of the yen have been too fast and that this can create problems for companies. The Finance Minister also warned of the negative consequences of excessive and disorderly movements in the exchange rate.
Technical levels
Source: Fx Street
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