USD/JPY Gains On The Back Of Higher Yields, Holds Below 158.00 For Now

USD/JPY ended Monday trading up 0.22% at 157.74, with gains driven by rising US Treasury yields amid speculation that the Federal Reserve will maintain its current interest rate stance. The pair saw consistent upward momentum despite hitting intraday high of 156.81, supported by bullish US economic sentiment.

• The USD/JPY traded between 157.20 - 157.60 area as we heading into the US session on Monday. The trend signal in USDJPY remains bullish and Friday’s initial gains reinforce this condition, initial resistance rests at 158.26 (June 14 high), while we trade well above initial support at 156.73 (20-day EMA)
• The pair's bullish momentum is underscored by the RSI, which shows positive momentum. However, caution prevails among buyers due to potential Japanese intervention.
• Japanese yen was the worst performer among G10 currencies, influenced by broader market dynamics and US economic factors. Analysts expect continued volatility as traders react to upcoming US and Japanese economic data and policy announcements.
• Bank of Japan Governor Kazuo Ueda indicated a need to monitor forex rates and import prices for inflation impacts, while Japan’s Prime Minister Fumio Kishida emphasized that decisions on BOJ’s ETFs are up to the central bank.
• Expiries include 154.00 ($1.95b), 153.50 ($1.31b), 155.00 ($886m), while upcoming notable expiries are; 135.50 ($1.97b June 20), 157.00 ($1.83b June 20), 151.50 ($1.73b June 20)
• Today, the data calendar is empty with just the BoJ Bond purchasing operations to take place.