The bond market has been more choppy this week but USD/JPY traders are not waiting around it seems. Buyers are eager to push their agenda, after having defended a drop near the 100-day moving average (red line) earlier this week. Now, we're seeing price move up to test the January high of 148.80 on the day.
That's the key level to watch on the daily chart as a firm break there sets up the potential to move towards 150.00 next.
There were some slightly dovish remarks from the BOJ earlier today here. So, that might be playing a bit of a role in the price action we're seeing. However, I would argue that the commentary is still fitting to what the central bank has been feeding markets in recent months. For now, it is all about waiting for the spring wage negotiations when it comes to the BOJ.
In any case, the technicals are still an important factor to be mindful about. And in this case, USD/JPY might be looking to make a play before the end of the week.
The only curious thing is that it comes despite the more sideways action in the bond market this week. 10-year Treasury yields might be up slightly today by 2.5 bps to 4.123%. However, it is still largely capped by the recent highs near 4.20% in the bigger picture.
