There has been big US dollar buying into the London fix the past two days. That suggests that major flows are behind the dollar rally, possibly hedge unwinds on foreign Treasury sales.
At the same time, the simple solution is the age-old positive correlation between higher US-Japan spreads and USD/JPY.
On the technical side, the break of the downtrend from last year in February is as simple (and effective) as it gets. There's some resistance in the 108.00 range and the short-term move is looking a bit stretched.
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