JPY was centre stage to close the week following the USD/JPY break higher over the 100 level in Thursday’s US session. USD/JPY extended its move higher through the Asian session overnight to start the new week, reaching an intraday high of 102.15. The pair is through clear resistance levels and looks clearly biased to the upside in the month ahead.
The USD has also extended its more general gains, EUR/USD for example dropping down under 1.30, while AUD/USD spiked down through parity to an 11-month low at 0.9961. The USD index is near 10-month highs, the US 10-year Treasury yield was up 11bps to close last week at 1.90%. There was no real news flow to drive the moves which appeared in part to be an extension of recent position unwinding. The 10-year yield, for example, is up around 30bps in just 6 days.
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