The US Dollar has been gaining ground once more against the Japanese Yen amid a rise in Treasury yields. This has been due to a combination of confidence from the Federal Reserve about the economy, and a solid US non-farm payrolls report this week.
Next week, all eyes are on US CPI. Still-strong inflation, combined with rising crude oil prices, may keep the markets focused on a hawkish central bank. That could continue boosting bond yields, pushing USD/JPY higher.
Keep a close eye on the 130.83 - 131.34 resistance zone for now. USD/JPY was unable to breach this zone yet, opening the door for a turn lower back to support (126.36 - 126.95).
Otherwise, breaking higher would place the focus on the 2002 high at 135.16.
Daniel Charts! Great too find you on here. Great work as always, I’ve noticed we are about to hit a strong resistance level as well. Wonder if it pops, with retail sentiment being so bearish don’t you think it may even be primed to go higher? Going to be fun to see how this plays out.