US Dollar Surges to Two-Month High as USD/JPY Reaches New Weekly High
The US Dollar (USD) has surged to a two-month high, driven by elevated US bond yields and oil-driven inflation risks. The pair USD/JPY has broken through its previous resistance level, reaching a weekly high above the 158.00 mark.
The Japanese Yen's (JPY) decline has been further exacerbated by concerns over a potential Bank of Japan (BoJ) rate hike, which could limit JPY losses and cap gains for the USD/JPY pair.
Traders are now looking forward to key economic releases, including the US Nonfarm Payrolls report on Friday, which is expected to provide cues about the Federal Reserve's policy path and drive the USD/JPY pair.