USD/JPY is steady above 146.00 as early Tokyo opens following Friday’s wild ride

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 Source