USD/JPY cracks the 1.40 barrier as yields push higher

News

Could USD/JPY be in store for another look at the top?

I don’t think the market is as worried about +6% Fed funds as it was in October but there’s a good chance that the terminal rate stays above 5% for longer than previously thought. The Bank of Japan transition has also proven (so far) to be a non-event.

We’re seeing multiple USD breakouts today, including against NZD — which is at the opposite end of the yield spectrum from Japan. That highlights the possibility of USD-specific buying. However mixed into all of that is the debt ceiling fiasco and the flows around that.

What still makes me optimistic about USD/JPY is that most signs point to ongoing resilience in US growth, even relative to other developed markets. The 2-year yield has also cracked above the 61.8% retracement and USD/JPY tracks that closely.

Articles You May Like

Unveiling My ₹11,000 Profit in Forex Intraday Trading: Learn the Strategies Behind My Winning Trades
UK May final manufacturing PMI 47.1 vs 46.9 prelim
Forexlive Americas FX news wrap 1 Jun: USD moves lower on lower inflation/Fed skip
This indicator will help you take profits in Tradingview #shorts #forex #forextrading
Private oil survey data shows large headline crude build vs a draw expected