USD/JPY heavy forward of European morning commerce

This isn’t the primary time I am going with this headline this week. 😆 The greenback is weaker on the steadiness however the transfer in USD/JPY is slightly outsized on the day. The pair is down zero.eight% to 150.30 at the moment and is nudging nearer in the direction of a key take a look at of the 150.00 degree subsequent. I’ve outlined some believable causes for the draw back transfer within the linked put up however including to that’s undoubtedly the continued rise in Japan authorities bond yields. That’s resulting in a narrowing within the price differential between 10-year yields within the US and Japan this yr.

For some context, 10-year JGB yields are actually at 1.44% – its highest since November 2009. This comes as market gamers are testing the bounds of a extra hawkish BOJ, with pondering that issues will decide up even faster once more after the spring wage negotiations in March.

Going again to USD/JPY, a take a look at of the 150.00 degree beckons now. A break of that may draw within the 50.zero Fib retracement degree of the swing greater since September at 149.22 subsequent. Alongside that, the December low of 148.63 may even be some extent of competition on a break of 150.00 within the periods forward.

This text was written by Justin Low at www.ubaidahsan.com.



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