- USD / JPY is up nearly 200 pips for the week, the biggest advance in more than eight months.
- Go up in Treasury yields, a key factor.
The USD / JPY far from taking a break, continued uphill and surpassed 108.50, setting new highs since June last year. The price remains firm near the highs with the momentum intact, but to the overbought indicators in the short term.
The 10-year Treasury bond rate reached 1.58%, the highest level since February, before moderating the rise. Powell’s words on Thursday did not slow the bond rally, but rather seemed to have given him a pound. This also led to a drop in the stock markets and a general appreciation of the dollar.
On Friday, attention will continue on the bond market and the impact of Thursday’s rallies on Wall Street, which had a sharp decline. Futures point to a negative opening with declines greater than 1%. Before the start the US employment report with non-agricultural payrolls (consensus: 182,000) and the unemployment rate (6.3%).
Go up and up and up …
From a technical point of view, USD / JPY is in a clear uptrend movement looking for a new level of equilibrium. On the upside, the next resistance appears around 108.70. Volatility has also woken up in the pair, although for now in only one direction.
The downward expectation lies in a downward correction but for now there are no signs. At the same time, there is the risk that it is seen as a buying opportunity and therefore limited and short-lived.
Technical levels
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