- USD/JPY gathers pace for a break above 111.00 amid favorable technical setup.
- Higher T-yields, Japanese FY-end flows continue to cheer USD/JPY bulls.
- All eyes on the yields and Biden’s infrastructure spending plans.
The vertical rise in USD/JPY extends into a sixth consecutive session on Wednesday, as the bulls reach the highest levels seen since January 2020.
The move higher in the spot could be mainly attributed to the Japanese Fiscal Year-end settlement, as the businesses close their books while repatriation flows also hold the key.
Additionally, the rally in the US Treasury yields and the dollar amid hopes of further US fiscal spending to boost the post-pandemic economic recovery also collaborate with the upsurge in the spot.
Looking ahead, the main event risk for the major remains US President Joe Biden’s speech while the broader market sentiment and month-end flows will likely remain the key drivers.
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