USD/JPY outlook
Over the next week the direction of the USD/JPY and the US dollar in general depends on the evolution of Treasury yields
Despite its rapid recent gain, the 10-year Treasury yield on Friday was still some 25 basis points below its March 31 peak at
1.746%. In reference to its historical range before the pandemic, it is between 50 and 150 basis points below average.
If US yields continue to rise, even if at a much more subdued pace, their impact on the USD/JPY will be inescapable. Markets have been anticipating the normalization of US interest rates for almost a year. Unless the Fed attempts, as it did for most of the second and third quarters, to reverse their direction, yields should continue to rise. On their shoulders, so will the US dollar.
On the bigger picture UJ & THE DOLLAR IS AT A MAJOR level of resistance where we see both pairs went bearish now am looking for some LH move on UJ then a push towards the down side
am really liking my set up on UJ keep and eye out lets take advantage of the market this week.
Over the next week the direction of the USD/JPY and the US dollar in general depends on the evolution of Treasury yields
Despite its rapid recent gain, the 10-year Treasury yield on Friday was still some 25 basis points below its March 31 peak at
1.746%. In reference to its historical range before the pandemic, it is between 50 and 150 basis points below average.
If US yields continue to rise, even if at a much more subdued pace, their impact on the USD/JPY will be inescapable. Markets have been anticipating the normalization of US interest rates for almost a year. Unless the Fed attempts, as it did for most of the second and third quarters, to reverse their direction, yields should continue to rise. On their shoulders, so will the US dollar.
On the bigger picture UJ & THE DOLLAR IS AT A MAJOR level of resistance where we see both pairs went bearish now am looking for some LH move on UJ then a push towards the down side
am really liking my set up on UJ keep and eye out lets take advantage of the market this week.
Trade closed: stop reached