Japanese Yen Briefly Touches 150

 Japanese Yen Briefly Touches 150

Japanese Yen (JPY) Briefly Touches 150 And Then Retreats

During Monday's session, the Japanese Yen (JPY) remained in the spotlight as the pair once again briefly touched the 150 level. The strength in the USD/JPY was mainly due to the rise in the US yields, but it was still not enough to rule out the BoJ intervention.

It was the fear of the BoJ intervention that the USD/JPY pair once again retreated from the 150 level. At the same time, the geopolitical tension around the world is on the rise, which is also keeping the markets on edge.

US Bond Yields On The Rise

For the most part, the US bond yields were subdued at best as investors looked ahead to the US GDP and the ECB meeting.

The 10-Y bond yields of the USA trade near 4.98% after touching a higher of 5% in the previous week. At that time, the Fed chair made comments about the strong labor market and the strength of the US economy. The core message of his comments was that more tightening may required given the macroeconomic conditions.

If we look at the DXY (Dollar index), it also trades near 106.28 with a jump of 0.1%, while the EUR trades near 1.0574 with a 0.2% decline.

Looking back at the JPY, it trades at the level of 149.93 against the greenback after touching a high of 150.14 during Monday's session.

For now, the key level remains the 150 as markets are fearful that any sustained moves above it will attract the BoJ's attention.

There is one group that believes that a rise in the US bond yields warrants a stronger US Dollar against the JPY. On the other hand, the second group believes that the BoJ will intervene to defend the 150 level. The end result of both of these opinions is that the USD/JPY seems to be stuck near the 150 level with no major downside or upside at all.

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