Forex
USD Breakout Puts Pressure on BoJ and US Treasury Department
The US Dollar's strength was fueled by hawkish comments from Kevin Warsh at Jackson Hole Economic Symposium, resulting in a breakout and fresh August highs for both DXY and USD/JPY.
USD/JPY has been driven by dynamics in the pair, with the 160.00 handle being a key level of interest. Bulls have finally broken through this level after two-and-a-half weeks of posturing just below it, and now the question is how long they will continue to push upwards until there is a response from policymakers.
The levels tracked by James Stanley are 160.64 and then 161.95, with above that being the same 164.00 level that stalled the move ahead of the July FOMC and BoJ rate decisions.