BoJ moved to contain rising bond yields | 29 3月 2022

29 3月 2022, USD/JPY

USDJPY trading plan:

The dollar hit a six-year high versus the yen after the Bank of Japan moved to contain rising bond yields, while U.S. Treasury yields soared to new multi-year highs, highlighting a divergence between the BOJ and other major central banks. Treasury 10-year yields vaulted above 2.5% to three-year highs, with the U.S. Federal Reserve expected to deliver a half-point interest rate rise in May as it tackles rising inflation, having kicked off its tightening cycle this month. Struggling to swim against the tide lifting interest rates higher globally, the BOJ staunchly defended its 0.25% yield cap by offering to buy an unlimited amount of government bonds for the first four days of this week.

Investment idea: buy 123.02 and take profit 123.70.

David Johnson
Analyst of «FreshForex» company
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