USD/JPY defies BOJ rate increase and lower US yields

The impact of the first Japanese interest rate increase in almost 17 years last week did initially not halt the USD/JPY in its tracks ahead of a major technical level. That level has been covered here for weeks and months now and it is impossible to understate its importance from a technical perspective. So, the price action since that BOJ rate increase has seen the dollar come very close to taking it out last week, when it reached a high at 151.86 during the Asian session on Friday. However, the dollar was not able to rise above 151.91/151.95 and later dropped back to a low at 151.01. That said the dollar did rise again into the weekly close and later ended in the US at 151.41. The markets seems to suspect that any further BOJ rate increases from here will be slow and noted Japanese press articles seemed to endorse that outlook, for rates to rise no further than 0.25% by 2025. So, despite a fall in US yields on Friday, the USD/JPY remained on the front foot into the weekly close. Today It has fallen back close to 151 again, as the Nikkei losses weigh on the dollar. The range seen has been covered by 151.05 to 151.45. It is just now trading at 151.28