The USD/JPY pair touched a five-month high on Wednesday at 106.23. Dollar supported by the recent rise in US Treasury rates. In the first day of the new week, USD/JPY has eased-off session highs but remains well bid above 105.50 as the US dollar is supported by the recent rise in US Treasury rates, FXStreet’s Analyst Joseph Trevisani reports.
Key quotes
“The rise in US Treasury rates, particularly the commercial referent of the 10-year, continues to provide support for the USD/JPY. Behind the yield increase is the assumption that US economic growth will speed up as the year ages and the stimulus package brings a surge in consumer spending.”
“As long as the prospects for the US economy are positive and interest rates are buoyant the USD/JPY should continue to move higher.”
“Technical factors have all shifted to supporting the USD/JPY. Support and resistance lines are equally balanced but the moving averages, 21-day at 104.89, 100-day at 104.40 and the 200-day at 105.50 substantially reinforce the rebound propensity after any decline.”
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