USD/JPY Continues to Follow U.S. Yields
From the Begining of the year USD/JPY has been tracking U.S yield with an 89% postive correlation with U.S yields. USD/JPY has been lagging just behind the 2 year and 10 year bond yields. which should ajust its self. this suggest that if U.S yield continue to climb USD/JPY could extend to 86.
However, the rise is in yields can not be 100% pegged to real demand. With the year end, large an small investor are booking yr end profits, preserving capital and repositioning. with little news coming out of the US this week may have already put traders into a year-end mentality
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