USD/JPY is usually the brightest trade on rising rates and it lives up to its reputation today as it surges above Friday’s high at 119.45. The Dollar added another 20 pips across the board in the past few minutes as the market continues to digest Powell’s hawkish remarks.
The rates market also reflected this, with US 5-year yields up 18 basis points on the day to 2.32%. Nasdaq buyers are plunging today, with the index down 1.6%.
I continue to highlight the longer term USD/JPY chart since we hit the late 2016 high.
It started off as a quiet day, but it certainly came alive.