USD/JPY briefly moved into the 159 yen range on rising crude oil prices and moves in long-term US yields, with the dollar-up, yen-down trend expected to continue. The divergence in monetary policy stances between Japan and the US and developments around the 200-day moving average will be key factors going forward.
Rising crude oil prices and moves in long-term US yields encouraged buying of the US dollar, with USD/JPY briefly reaching the 159 yen level.
Today's key factors include developments in crude oil prices and long-term US yields.
The English summary notes that USD/JPY has entered a technically favourable position after breaking above its 200-day moving average, and that the divergence in monetary policy stances between Japan and the US could encourage dollar buying and yen selling.
Meanwhile, market concerns over the Bank of Japan's review of interest rates could cause volatility to rise as USD/JPY approaches the psychological 160 yen level.