USD/JPY shows some life in final stretch of the week ...Middle East

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USD/JPY shows some life in final stretch of the week

Well, I'm not all too convinced just yet. For one, the bond market needs to play ball and 10-year Treasury yields are down to 4.24% now and contesting a potential break below its own 200-day moving average. All else being equal, that's a factor that should weigh on USD/JPY instead of underpin it.

So, while there is a spurt higher here in USD/JPY to start the session, it might not be one that stays the course. Besides the bond market, we also have to factor in month-end flows and the reaction to the US PCE price data later to get a better sense of the move we're seeing.

    This article was written by Justin Low at www.forexlive.com.

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