Free Trial

Late US Yield Rise Pushes USD/JPY Back Above 148.00

JPY

USD/JPY finished last week above 148.00 and we are holding above this level in early Monday Asia Pac trade. Yen was close to unchanged last week, marginally outperforming some other G10 plays like the EUR.

  • The technical skew around USD/JPY still remains to the upside. Sights are on 149.16 next, a Fibonacci retracement. Key short-term support has been defined at 144.36, the Jan 12 low. A break of this level is required to signal a top. Initial firm support to watch lies at 146.00, the 50-day EMA.
  • Friday's US session saw a slightly firmer US yield backdrop. This helped bring US-JP 10yr yield differentials off recent lows, although we are still sub recent highs in the spread (near +350bps).
  • The local data calendar is empty today. Tomorrow there will be focus on the Dec jobless and job-to-applicant ratio. This is followed by retail sales data on Wednesday, along with IP and consumer confidence.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.