Higher yields, higher dollar continue to bolster the bullish momentum
With Powell giving the green light for Treasury yields to push higher yesterday, it may be tough to pick a top in the pair if the market continues to run with the current narrative.
As much as the pair tends to be a risk proxy at times, this time it is more of a reflection of bond market sentiment – in particular, Treasuries.
The push higher now takes out the July high of 108.16 and that sees price climb to its highest levels since June last year. The high back then hit 109.85 but before getting to that, the 100-month moving average stands @ 108.75 and will be a key level to watch.
Price action is looking a little extended after the surge higher yesterday but given prevailing market conditions, technicals may not mean all too much for the yen.