The USD/JPY pair is up for the fifth consecutive day, reaching 2016 high. Hawkish Fedspeak supports US Treasury yields and durable goods orders ahead of the PMI. Minutes from the Bank of Japan’s Kataoka meeting imply a bearish outlook for the yen. There could be a delay in final preparations due to grim news for Russia and Ukraine during Biden’s visit to Europe for the NATO summit. The USD/JPY outlook gained 0.25% on the intraday, around 121.60 ahead of Thursday’s European session, extending the winning streak to five days. The USD/JPY pair has been updating from a five-day uptrend since January 2016. Recently, USD/JPY bulls have been favored by the underlying strength in US Treasury yields. In addition, the Bank of Japan’s news is also supporting the bulls. –Are you interested in learning more about STP brokers? Check our detailed guide- Fed hawks and soaring yields On Wednesday, the yield on the US 10-year Treasury fell from a three-year high by 2.2 basis points (bps). During the recent bond crash, the Fed’s hawkish speech boosted yields and favored dollar buyers. Recently, St. Louis Fed President James Bullard and Cleveland Fed President Loretta Mester endorsed negotiations for a Fed rate hike and quantitative tightening (QT) in May. Dovish Bank of Japan Meanwhile, the Bank of Japan (BOJ) is willing to expand its easy money policies in response to BOJ Board Member Goushi Kataoka’s comments regarding weakening JPY rates. A weak yen is good for the overall economy, says Kataoka of the Bank of Japan. Russian saga: A cause of risk aversion Market sentiment is also under pressure ahead of President Biden’s meeting with NATO allies in Europe due to the US’ willingness to impose additional sanctions on Russia. In addition, the willingness of Russian President Vladimir Putin to require ruble payments for oil sold to “unfriendly” countries and concerns about the Coronavirus in China and Europe have also strained sentiment. Get FREE Forex Signals Now! USD/JPY outlook via daily open interest The USD/JPY price has been on the rise constantly. Meanwhile, the open interest has fallen by almost 6k contracts, indicating that the pair’s bullish outlook is weakened as the buyers have exited the market. What’s next for the USD/JPY outlook? In addition to Fedspeak speeches and risk catalysts, USD/JPY traders should also pay attention to Markit’s US PMI preview in March and durable goods orders in February. The Markit Manufacturing PMI is likely to fall to 56.3 from 57.3 in previous reports, while the Markit services PMI may have fallen to 56.0 from 56.5. As a result, the US durable goods orders growth is expected to turn negative in February, with a forecast of -0.5% versus 1.6%. –Are you interested in learning more about forex bonuses? Check our detailed guide- USD/JPY price technical outlook: Bulls to roar The USD/JPY price is playing with the daily highs above 121.60 area. The pair has already marked a 72% average daily range so far. Meanwhile, the volume data also points at further gains. If the trend continues, the price may head towards 122.00 ahead of 122.50. On the flip side, if the price finds a rejection around the current levels, we can observe a downside correction towards the 120.00 area. Looking to trade forex now? Invest at eToro! Trade Forex Now! 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money Saqib Iqbal Saqib Iqbal Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis. View All Post By Saqib Iqbal Majors share Read Next EUR/USD Price Falls Below 1.10 amid Risk-off, High Yields, Eying Data Saqib Iqbal 2 months The USD/JPY pair is up for the fifth consecutive day, reaching 2016 high. Hawkish Fedspeak supports US Treasury yields and durable goods orders ahead of the PMI. Minutes from the Bank of Japan's Kataoka meeting imply a bearish outlook for the yen. There could be a delay in final preparations due to grim news for Russia and Ukraine during Biden's visit to Europe for the NATO summit. The USD/JPY outlook gained 0.25% on the intraday, around 121.60 ahead of Thursday's European session, extending the winning streak to five days. The USD/JPY pair has been updating from a five-day uptrend since… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.