Yen crosses continue to soar
One can observe the broad weakness of Japanese yen on Thursday. USDJPY pair jumped to the highest level since December 2015 as the outlook for monetary policy between Japan and the US varies significantly. BoJ Governor Kuroda recently again emphasized the need to maintain ultra-loose monetary policy to support Japan’s economic recovery. Meanwhile FED is turning more hawkish and many US policymakers indicated readiness to tighten policy more aggressively to combat inflation, even usually dovish Evans. Also elevated US bond yields underpinned the USD and provided additional fuel for the rally. Meanwhile, Japanese 10-year bond yield remains below 0.25%, which caused further widening of the US-Japanese bond yield spread, which puts additional pressure on JPY. Nevertheless traders should keep in mind that comments from NATO officials after today's meeting may have the biggest impact on the pair.
USDJPY pair managed to break above the psychological 122.00 level and if current sentiment prevails, an upward move may accelerate towards 123.90 where November 2015 highs are located. Source: xStation5
