USD/JPY shrugs off stock market weakness
It’s a push-and-pull with USD/JPY on most days. Today it’s weakness in the stock market trying to push it lower but higher Treasury yields are the overwhelming force, pulling it higher.
US 10-year yields are up another 3 bps today to 2.94%. That’s one basis point away from the high of 2018 and another short hop to 3%.
USD/JPY is tracking the move in three days of gains that have lifted it above the April high of 107.76. But the late-February high of 107.90 posed a tougher challenge. After hitting 107.86, the pair has dropped to 107.60.
What happened is that the stock market started to kick and scream about the same higher rates that were driving USD/JPY upwards.