The USD/JPY daily chart has seen some volatility in the bond market this week, but traders are not hesitating to push the agenda forward. After defending a drop near the 100-day moving average, buyers are now driving the price up to test the January high of 148.80. This level is crucial, as a firm break there could set up a potential move towards 150.00 next. Despite slightly dovish remarks from the Bank of Japan, the technicals are still an important factor to consider, and USD/JPY may be poised for a play before the end of the week.
The bond market’s sideways action has not deterred the eagerness of USD/JPY traders to drive the market. The resilience of the buyers, in the face of choppy bond market conditions, is reflected in the price’s upward push to test the crucial January high of 148.80. The potential for an even further move towards 150.00 hinges on a firm break at this level. Even though the Bank of Japan’s comments may be influencing the current price action, it is still aligned with the central bank’s recent market communication. With the spring wage negotiations on the horizon for the BOJ, it is evident that the technicals are a significant consideration for USD/JPY traders.
Despite the bond market’s more sideways action throughout the week, the daily chart for USD/JPY is signaling a potential play before the week ends. The slight increase in 10-year Treasury yields today may also be an indication of the market’s ability to withstand the recent volatility. However, the bigger picture still shows that these yields are largely capped by recent highs near 4.20%. This all points to the remarkable determination and resilience of USD/JPY traders, who are eager to make a move despite the market conditions.