FXStreet (Edinburgh) - Analysts at Westpac remarks that an improvement in the US yields could revitalize the USD/JPY.
“The sharp bounce in US 10 year yields from the test of 2.40% caught us (and the market) on the hop. So there will be a range of frustrated buyers out there on any dips. We don’t want to chase the move higher, with 102.80/103.00 holding well”.
“The Bank of Japan on Fri will reaffirm the pace of QE but with no hint of new measures, leaving the reform ball in PM Abe’s court”.
“This means a US yield breakout is a more plausible source of fresh USD/JPY upside. Yet if a 3 month average of 234K on US payrolls hasn’t done the trick, this week’s calendar doesn’t seem likely to ignite US yields”.