Thursday, May 30, 2024
HomeFinance NewsUSD/JPY set to continue upward momentum at week's start

USD/JPY set to continue upward momentum at week’s start

The recent movement in the forex market, particularly in yen pairs, can be attributed to the rise in bond yields. The 10-year Treasury yields have increased by 5 basis points to 4.301%, which has provided support to yen pairs in today’s session. The USD/JPY pair, specifically, is witnessing a resurgence in buying momentum as it reclaims control over its key hourly moving averages. By surpassing the 100-hour moving average, the near-term bias for the pair has shifted towards a more bullish stance.

However, it is crucial to note that any further upward movement in the USD/JPY pair requires confirmation from the bond market. Although bond yields are currently on the verge of a breakthrough, it has not yet been achieved. This indicates that the bond market still holds significant influence over the direction of yen pairs, including USD/JPY.

Overall, the recent surge in yen pairs can be attributed to the impact of higher bond yields. The USD/JPY pair, specifically, is experiencing a shift in sentiment towards a more bullish outlook after reclaiming control over its important moving averages. However, it is vital to keep a close eye on the bond market as any significant advancement in yen pairs would require approval from the bond market first.

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