USD/JPY to race higher as US Treasury yields continue to rise

FXStreet Team FXStreet

The consolidation in the USD/JPY over the past two weeks has given a firm base at 108.50. Meanwhile, US 10-Year Treasury yield climbed above 1.7%, a 14-month high. If American Treasury rates continue to rise they will pull the USD/JPY higher, according to FXStreet’s Analyst Joseph Trevisani.

Key quotes

“With the US Federal Reserve apparently happy or at least tolerant of rising Treasury and commercial yields and the BOJ quietly pleased, the direction of the USD/JPY is higher. Nonetheless, even under this fundamental impetus, the longer the pair lingers without new highs, the greater the temptation for traders to book some of those gains.”

“The USD/JPY ranged above 110.00 for much of 2018 and 2019 so there is no fundamental reason that if US rates continue to rise, it could not return to those levels.”

“Technical analysis shows the USD/JPY has good support at 108.50 and at 107.90. Immediate resistance at 109.35 and 109.65 is weak. The early pandemic plunge and recovery from late February to late March last year will give little pause one way or another, the traded volumes on those panicky days were far too thin for positioning.”

Author

FXStreet Team

FXStreet

EUR/USD stays near 1.1650 with fading momentum

EUR/USD holds ground after five days of losses, trading around 1.1650 during the Asian hours on Friday. The 14-day Relative Strength Index momentum indicator at 39 trends lower, confirming fading momentum rather than oversold conditions.

GBP/USD remains below 1.3450, nine-day EMA

GBP/USD remains subdued for the fourth consecutive day, trading around 1.3430 during the Asian hours on Friday. The momentum indicator 14-day Relative Strength Index at 51.9 is neutral, reflecting slower momentum after firm recent readings. An RSI drop back beneath 50 would strengthen the case for a deeper pullback.

Gold flat lines around $4,475; looks to US NFP report for fresh impetus

Gold reverses a modest intraday dip to the $4,453 area, and trades near the top end of its daily range heading into the European session. The upside, however, seems limited as traders might opt to wait for the US Nonfarm Payrolls report later today. The crucial employment details will be looked upon for more cues about the Federal Reserve's rate-cut path.

Bitcoin, Ethereum and Ripple find key support, reviving rally hopes

Bitcoin, Ethereum, and Ripple steadied above key support levels on Friday after being rejected at mid-week resistance zones. The short-term recovery prospects remain intact if the top three cryptocurrencies by market capitalization hold these support zones.

2026 economic outlook: Clear skies but don’t unfasten your seatbelts yet

Most years fade into the background as soon as a new one starts. Not 2025: a year of epochal shifts, in which the macroeconomy was the dog that did not bark. What to expect in 2026? The shocks of 2025 will not be undone, but neither will they be repeated.

Pepe Price Forecast: PEPE risks 100-day EMA fallout as bullish interest fades

Pepe is under extreme selling pressure, trading in the red for the fifth consecutive day, down 1% at press time on Friday. Pepe’s decline following a 72% hike last week suggests a likely profit-booking phase, while on-chain data indicates declining network activity.