USD/JPY climbs to 15-day high above 150.00 on high US yields, geopolitical tensions

• USD/JPY reached a new 15-day high at around 150.05, but fears of Japanese intervention led to a quick rejection.
• Wall Street continues to print losses, while the US 10-year benchmark note rate is 4.95%, supporting USD/JPY.
• Upcoming data includes Foreign Bond Investment and Stock Investment by Foreigners in Japan and third-quarter GDP and unemployment claims data in the US.

USD/JPY reached a new 15-day high at around 150.05, though the price was quickly rejected, as seen by the 5-minute chart, amid fears of Japanese authorities' intervention in the Forex markets. At the time of writing, the pair exchanges hand volatile within the 149.90/150.00 area, registering gains of 0.05%.

USD/JPY trades volatile within 149.90/150.00 area, registering gains of 0.05%

Wall Street continues to print losses, while the US 10-year benchmark note rate sits at 4.95%, gaining 13 basis points, a tailwind for the USD/JPY. The US Dollar Index (DXY), which tracks the Greenback’s performance against a basket of currencies, including the Japanese Yen (JPY), gains 0.27%, at 106.52.

Regarding economic data, the US saw an unexpected increase in New Home Sales for September, with a 12.3% month-on-month rise. This significant uptick followed a sharp contraction of -8.2% in the previous month, the fastest pace of growth since early 2022. These positive data, combined with earlier reports like the S&P Global PMIs for the US showing improvements in business activity, support the US Dollar. This could suggest an increasing likelihood of a soft economic landing in the US.

Israel prepares ground offensive, according to its Prime Minister

On the geopolitical front, Israeli Prime Minister Benjamin Netanyahu crossed the wires, saying, “we are preparing for a ground invasion.” He added that he won’t give any details, that civilians in Gaza should move to the south, and that the invasion time will be reached by consensus.

The docket would feature Foreign Bond Investment and Stock Investment by Foreigners on the Japanese front. On the US front, the calendar would feature the third quarter Gross Domestic Product (GDP) along with unemployment claims data.

USD/JPY Technical Levels