- Yen weakened by yields and rises in stocks.
- The dollar gains pace ahead of US data and the opening of Wall Street.
USD / JPY resumed bullish runs after pausing on Tuesday, in what was the first drop in more than a week. The price has just exceeded 107.00 for the first time since August 2020. The pair remains around this level with the bullish tone intact, and with overbought indicators in daytime charts, but with no signs of a downward correction.
The USD / JPY reached a new high in months at 107.02. The dollar is advancing along the market, gaining pace before the data and the American session. The dollar index is trading at 90.95, recovering from 90.60.
Momentum continues to be from a stronger dollar and rising Treasury yields. At the same time equity markets are rising, which also supports USD / JPY. Wall Street futures point to a positive open with gains in the order of 0.65% on average for the major indices.
I know to release US data on Wednesday, which include ADP’s private sector employment report and service sector reports. Also speaking are Federal Reserve officials Patrick Herkler, Raphael Bostic and Charles Evans. Later, the central bank’s Beige Book on the state of the economy will be published.