Japanese Yen Fails to Rally Despite Higher Yields

The Japanese Yen remains the weakest major currency despite higher domestic yields and monetary tightening by the Bank of Japan (BoJ).

Societe Generale strategists note that despite a potential 10-year yield rise to 3.50% due to further BoJ hikes, FX markets show limited enthusiasm for the Yen.

The USD/JPY trades above the 200-day moving average and near the 159 level, while EUR/JPY is close to its all-time high after recovering from a coordinated intervention low two weeks ago.