USDJPY sees more upside momentum

The USDJPY has seen more upside momentum. The rise was triggered by Daly's more hawkish comments on inflation. The US market may have gotten a little ahead of itself on rates.

Looking at the debt market in the US, yields are sharply higher with the:

• 2 year 3.006% +13 basis points
• 5 year 2.779% +14.2% basis points
• 10 year yield 2.694% +11.7 basis points
• 30 year yield 2.977%, up 6 basis points

The rising yield Yield A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as Read this Term is helping to push the USDJPY USD/JPY The USD/JPY is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one US dollar. For example, when the USD/JPY is trading at 100.00, it means 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the world’s third most traded currency, resulting The USD/JPY is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one US dollar. For example, when the USD/JPY is trading at 100.00, it means 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the world’s third most traded currency, resulting Read this Term higher.

Technically, the 131.24 – 131.48 swing area was joined by the 61.8% retracement of the move up from the May low at 131.328 as a key target to get back above at today.

The price has indeed moved back above that area and that has triggered more buying.

Also helping today is that earlier today the price got close to the rising 100 day moving average at 130.234. The buyers leaned against the moving average as risk could be defined and limited. The buyers are rewarded with a solid run to the upside.

See earlier video where I speak of the levels in play and why they are important (CLICK HERE).