The yen is on the weak side again with USD/JPY sitting above 146.00 as I update.
The long story short on USD/JPY is that
- higher US yields (with a gap between US 2- and Japanese 2-year yields not far from 500bps)
- the view that the Federal Open Market Committee (FOMC) will be higher for longer
- and that the Bank of Japan is showing no signs of an imminent change in super-easy monetary policy
remains supportive for the pair.
The latest from the US is that Fridays’ jobs report is suggestive of an economy heading for a soft landing:
As a reminder, if you are keen to short USD/JPY:
Funny signs aside, if you are nimble being short is tradeable.
This article was written by Eamonn Sheridan at www.forexlive.com. Source