Welp, that was quick. But it is fitting with the sort of moves we have seen this year with 10-year Treasury yields hitting well above 2% and oil already having hit $125 so early on in Q1. Breathtaking stuff.
USD/JPY jumped above 123.00 in Asia trading and has now briefly clipped 125.00 before some profit-taking.
I mentioned earlier how the figure level may offer some natural resistance for the pair but in lieu of surging bond yields, it is tough to fight the trend at the moment.
I would expect layers of offers around the figure level but considering how the BOJ is so desperately trying to keep with its yield curve control, it could just exacerbate further weakness in the yen.
Beyond 125.00, it’s all about picking tops at key psychological levels and 130.00 would likely be next. But for now, let’s see if buyers still have the appetite after a monster run of gains over the past four weeks.