USDJPY Chart Technical Outlook keeps rallying on higher US yields, 161.70 and 162.50 are the next targets
Donald Trump’s victory in the Supreme Court has boosted market expectations of a second term by Republican Candidate and has sent US Treasury yields rallying.
Bond markets are anticipating higher tariffs to have an inflationary impact on the US economy, which has depressed demand and boosted the yield for US Treasuries, The Yen, which is very sensitive to the US-Japan yield differential has dropped to fresh 38-year lows.
The Japanese financial minister, Suzuki has reiterated that they are vigilant to currency moves, without the customary warning of an intervention. A swift change in tone might have encouraged Yen sellers.
Technical indicators show the pair at overbought levels and bearish divergence, but no clear signs of a reversal. The daily ATR levels at 161.75 and 162.50 might act as resistances. Supports are 161.25 and 160.20.
