Skip to Content
News & Analysis at your fingertips.
Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
US Dollar Firms as Favourite Against a Wilting Yen. Where To for USD/JPY?

US Dollar Firms as Favourite Against a Wilting Yen. Where To for USD/JPY?

Daniel McCarthy, Strategist


What's on this page

US Dollar, USD/JPY, Japanese Yen, BoJ, Crude Oil, China, RBI- Talking Points

  • The US Dollar continues to blast higher, supported by rising Treasury yields
  • Higher US yields undermine the Yen as the Bank of Japan sits on its hands
  • A lift in crude oil also hinders the Yen’s prospects. Can USD/JPY break 135?

Trade Smarter - Sign up for the DailyFX Newsletter

Receive timely and compelling market commentary from the DailyFX team

Subscribe to Newsletter

The US Dollar inched higher again today as Treasury yields bumped up a notch in the Asian session. The benchmark 10-year note is yielding just over 3%. The Japanese Yen remains on the backfoot with USD/JPY making a fresh 20-year high above 133.20 today.

Inflation expectations in Japan are heading north with the 5-year breakeven inflation rate eclipsing 1.3%, up from 0.5% in January. Despite this, the Bank of Japan has shown little interest in tightening monetary policy and today’s growth numbers support their stance.

Japan’s final 1Q GDP came in slightly better than expected today at -0.1% quarter-on-quarter instead of -0.3%.

The weaker Yen lifted the Nikkei 225 and other APAC indices were mostly higher except for the CSI 300, which gave up early gains.

The Hang Seng Tech index benefitted from China approving several new gaming applications. The market is interpreting this as the government being more lenient toward the sector and perhaps more widely.

Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Daniel McCarthy
Trading Forex News: The Strategy
Get My Guide

Crude oil continues to trade at elevated levels ahead of U.S. Energy Information Administration (EIA) reports on inventory later today. The WTI futures contract is near US$ 119.70 bbl while the Brent contract is around US$ 120.70 bbl at the time of going to print.

The gold price is steady at US$ 1,845 while the commodity linked Aussie is lower in the aftermath of yesterday’s RBA outsized rate hike. The Kiwi looks to have sunk in sympathy. The Euro, Suisse and Loonie saw gains while the Sterling was steady.

The Reserve Bank of India (RBI) joined other global central banks with a larger than expected 50 basis-point hike today to take their repurchase rate to 4.90%.

Looking ahead, after the EU GDP numbers, the US will see data on mortgage applications and wholesale inventories.

The full economic calendar can be viewed here.

How to Trade USD/JPY
How to Trade USD/JPY
Recommended by Daniel McCarthy
How to Trade USD/JPY
Get My Guide

USD/JPY Technical Analysis

USD/JPY made another 20-year high today as it approaches historical peaks at 135 that may offer resistance.

The breakout has seen volatility tick up as the price has moved outside the upper 21-day simple moving average (SMA) based Bollinger Band.

Support might be at the breakout zone of 131.25 – 131.35 or the 5-day simple moving average (SMA) just above there.


Chart created in TradingView

--- Written by Daniel McCarthy, Strategist for

To contact Daniel, use the comments section below or @DanMcCathyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.