USDJPY is an almost constant upward move since the beginning of 2022. In spite of pick-up in geopolitical tensions, JPY fails to act as a safe haven and is the worst performing G10 currency year-to-date. Meanwhile, the US dollar is having a great start to the year as the Fed's tightening cycle and safe have flows keep currency in demand. USDJPY is one of the pairs that best reflect changes in US yields and as those were on the rise so was the pair. Result of these factors is the first break of the USDJPY above 120.00 mark since early-2016.
Taking a look at the USDJPY chart at a weekly interval, we can see that the pair broke above a long-term resistance zone in the 116.50 area at the beginning of March and is now slowly approaching resistance in the 121.25 area. Blue overlay on the chart below is an inverted TNOTE chart and shows that upward move on the pair mimicked changes on the bond market. Having said that, keeping track of US yields may be the best way of trading USDJPY right now. Traders should keep on guard this afternoon as a number of Fed members will be delivering speeches.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
