USD/JPY jumps above 132.50 as US yields soar
29.03.2023, 13:46

USD/JPY jumps above 132.50 as US yields soar

  • Japanese Yen is under pressure across the board on risk appetite and higher US yields.
  • DXY is up by 0.30% on Wednesday, down by 2.20% in March.
  • USD/JPY is having the biggest daily gain of the month, rising more than 150 pips.

Following a correction to 131.55, the USD/JPY resumed the upside, breaking firmly above 132.00. It is trading at its highest level in a week at 132.55/60. It is up by 175 pips, the biggest daily gain in a month.

The pair has been moving all day with a bullish bias. On Asian hours it was supported by a broad-based recovery of the US Dollar. More recently, the move higher gained speed boosted by higher US yields.

The US 10-year Treasury bond yield reached 3.61% and the 2-year climbed to 4.14%, both at the highest levels in a week. On Wall Street, US equities opened with strong gains. The Dow Jones is up by 0.70% and the Nasdaq gains 1.30%.

The combination of risks appetite and higher US yields, as the banking crisis fades, weighs on the Japanese Yen. The currency is the worst performer on Wednesday among the most traded currencies.

USD/JPY looking at 133.00

In the daily chart, the pair is above the 55-periord Simple Moving Average (SMA), currently at 132.40. On the upside, the next barrier is the 133.00 area. A consolidation above would clear the way to more gain. On the flip side, the 131.80 zone has become the key support.

Technical levels

 

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