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USD/JPY tentatively holding the upside this morning

The further rebound in the USD/JPY yesterday came after the release of the stronger than expected US ISM manufacturing data showed gains across all its components. Perhaps the most significant of those was the prices paid component. So, US yields jumped higher, with the 10 year note rising by 0.12%. That lit the blue touch paper under the dollar and sent it higher across the board. The USD/JPY rose to a high at 151.77 and later closed in the US at 151.65. Today it has mostly held those gains after a brief dip to 151.51 earlier in the Asian session. The high seen so far today has been set a short while ago at 151.80. So, as you can see, it is close to the high seen on March 27 (151.97), before the BOJ verbally intervened with a barrage of warnings about FX volatility. Of course what they really mean is all about the level of the dollar. A detailed update here yesterday explained why 152 is potentially important. So, as you can see the market is still wary of testing that rhetoric today, despite the fundamentals still supporting upside in the dollar. The USD/JPY is just now trading at 151.75 

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