USD/JPY has risen in 10 of the past 12 trading days. What’s next


content provided with permission by FXStreetRead full post at forexlive.com

The repricing of Fed hikes higher for longer has been felt in USD/JPY more than anywhere else in the forex market. The pair has risen in 10 of the past 12 trading sessions and one of those declines was only 6 pips.

At the moment, the pair is carving out a new high that dates back to November at 140.72.

There isn’t much standing in the way of the march higher and it’s confirmed by a break higher in US 2-year yields above 4.50%. Be warned though, US 2s faded 7 bps today after hitting 4.63% and the 14-day RSI in this pair is at 71. Further, there’s some moderate resistance at 142.24, which was the late-November high.

I think this pair could make another run for 150.00 but now would be a good time for a break as we wait to hear from the Fed and wait for May CPI data.