USD/JPY: Interest rates move to the dollar's advantage
|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.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.