USDJPY is testing the swing highs of 2024
The USDJPY has moved to a new session high and in the process is moving further into the swing area at 2024 highs that area comes between 150.718 and 150.879. That area has been on to several swing highs (see red number circles on the chart above). Each high has found willing sellers.
However, the last peak on March 1, finally turned buyers into sellers and led to a fall from 150.718 to a low of 146.47 on March 8 before starting its reversal back to the top.
The pair is now trading at 150.83 – just 5 pips from the 2024 high.
Earlier today, the BOJ did raise rates for the first time in 17 years, and although they said that they would stop yield curve control, they also did say that we continue to buy bonds. As a result, the 10-year yield actually fell 0.3 basis points to 0.729%. The market is not buying into the idea that the policy has shifted …..much at all.
Meanwhile, the focus shifts to the Fed decision tomorrow where traders are not wondering if it is 2 instead of 3 cuts in 2024? Arguing against that is fed to go on 60 minutes not too long ago suggesting that rates are restrictive and the gains in inflation in the Fed some room to cut. The problem is inflation is more toward 3% vs 2%. We will know more in a day or so.