US Dollar Gains Momentum on Rising Interest Rates

The US dollar continues to benefit from rising interest rates in the United States. This is creating opportunities for a 'carry trade' in the USD/JPY pair.

The market saw significant volatility on Monday, as traders returned after the weekend's news of President Donald Trump refusing an Iranian peace offer and its impact on bond markets.

Interest rates in America are climbing, which is driving up the value of the US dollar. The Bank of Japan has been threatening to intervene, but market participants have grown skeptical of their efforts.

The 200-day EMA serves as a key support and resistance level for this pair. A breakout above ¥158 could lead to further gains towards ¥160, while a short-term pullback may see the market drop to ¥155.