USD/JPY breakout continues
USD/JPY touched above the April high on Friday but it’s exploded above the late-February high today to the best levels since Feb 13.
Earlier, Nomura was out with a note calling for 109.00 in the pair. It looks like they might not have to wait long, with the pair up 90 pips to 108.56 today.
Speaking of trade ideas, Morgan Stanley narrowly avoided getting stopped out in a USD/JPY trade from late March. Now it’s starting to pay off.
How high will it go?
I’m impressed with the strength of this breakout. We’ll see how it closes today but right now it’s looking good for the pair. Add in rising yields and a potential break of 3% in 10s, and there is a powerful catalyst for longs.