The Fed’s repricing of hikes higher for longer has had an impact on USD/JPY more than anywhere else in the forex market. The pair has risen in 10 of the last 12 trading sessions and one of those declines was only 6 pips.
Currently, the pair is carving out a new high dating back to November at 140.72.
There’s not much standing in the way of the upside and that’s confirmed by an upside breakout in US 2-year yields above 4.50%. Be warned though, the US 2 is down 7 basis points today after hitting 4.63% and the 14-day RSI for this pair is at 71. Additionally, there is moderate resistance at 142.24, which was the highest in late November.
I think this pair could make another run for 150.00, but now would be a good time for a break as we await news from the Fed and wait for May CPI data.
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