How much longer can USD/JPY hold under 150? The USD is supported by yields, economy

Japan’s finance minister was once again across the news wires with warnings on intervention.

They sound rather hollow. The issue does not appear to be a weak yen, but a strong USD. EUR/JPY, GBP/JPY are not scaling lofty heights, suggesting the USD/JPY gains are USD driven.

There are easily explainable factors for the stronger USD:

  • US yields are ratcheitng higher and higher
  • the US economy is resilient

Its difficult to make the case that USD/JPY is much higher than fundamentals support.

Check out EUR/JPY, and GBP/JPY – they are flat lines compared with USD/JPY.

This article was written by Eamonn Sheridan at Source