• USD/JPY heads for the highest daily close since August 2015.
  • The US dollar remains strong versus the Japanese yen, supported by higher US yields.
  • The divergence between the Bank of Japan and the Fed is widening.

The USD/JPY is rising for the sixth day in a row on Friday. During the American session, it climbed to 124.67, the highest level since March 28, and then pulled back toward 124.30 on the back of a volatile US dollar.

US yields continue to tell the story

The USD/JPY continues to move in line with US yields. The 10-year peaked earlier at 2.72%, the highest since February 2019, and the 30-year at 2.73%, the highest since May 2019. The key driver is the plan of the Federal Reserve to raise interest rates more aggressively and to start the reduction of its balance sheet.

The ongoing decline in bonds still offers support to the greenback. The DXY is now up just 0.10%, but earlier, it reached 100.19, the highest level in almost two years.

The yen is among the worst performers, also affected by the improvement in risk sentiment. Stocks in the US are trimming weekly losses. The Dow Jones is up by 0.63% while the Nasdaq is still down, falling by 0.61% but off lows.

The USD/JPY is about to post the fifth consecutive weekly gain. The divergence of the monetary policy path of the Federal Reserve and the Bank of Japan is set to widen and could continue to support the rally of the pair, which is trading at levels not seen since 2015.

Technical levels

USD/JPY

Overview
Today last price 124.4
Today Daily Change 0.46
Today Daily Change % 0.37
Today daily open 123.94
 
Trends
Daily SMA20 121.15
Daily SMA50 117.62
Daily SMA100 115.98
Daily SMA200 113.61
 
Levels
Previous Daily High 124
Previous Daily Low 123.47
Previous Weekly High 125.1
Previous Weekly Low 121.28
Previous Monthly High 125.1
Previous Monthly Low 114.65
Daily Fibonacci 38.2% 123.8
Daily Fibonacci 61.8% 123.67
Daily Pivot Point S1 123.61
Daily Pivot Point S2 123.27
Daily Pivot Point S3 123.07
Daily Pivot Point R1 124.14
Daily Pivot Point R2 124.34
Daily Pivot Point R3 124.68

 

 

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