USD/JPY revisits final week’s highs on firmer greenback

USD/JPY vs US Treasury 10-year yields (%) day by day chart

After the hiatus yesterday, Treasury yields are pushing larger to begin the brand new week with 10-year yields now nearing 4%. That’s amongst a number of causes underpinning the greenback this week, however is a key driver for the push larger in USD/JPY that we’re seeing. The pair is now buying and selling to the highs seen final week, pushing simply above 146.00 forward of European buying and selling.

The excessive final week touched 146.41 however the day by day shut ended up beneath the 50.0 Fib retracement stage of the swing decrease from November to December, seen on the 146.07 stage. As such, that can stay the vital resistance stage as soon as once more for buying and selling this week.

If patrons can maintain a break and day by day shut above that, it can tee up a take a look at in direction of the 38.2 Fib retracement stage at 147.45 and 100-day transferring common (crimson line) subsequent at 147.39 at the moment.

That being stated, lots may even nonetheless rely on bond market developments. Whereas 10-year yields want to push again above 4%, the 200-day transferring common at 4.077% stays elusive in the interim. Including to that, there’s nonetheless questions surrounding the robust bids within the front-end of the curve that we noticed on the finish of final week. Will that come again once more later as we speak in Wall Avenue buying and selling?