USD/JPY Bulls Push Higher as Markets Bet Against the House
USD/JPY has been on an upward trend in recent weeks, driven by rising Treasury yields and a perceived lack of intervention from policymakers. The pair has rallied by over 500 pips since US Treasury Secretary Scott Bessent made a comment that markets could bet against the Japanese Yen.
Bessent's statement was made when USD/JPY was near lows, but it failed to deter investors from buying into the currency. In fact, the pair has continued to rise, with bulls becoming increasingly bold in their predictions.
The Bank of Japan's decision to raise interest rates last week also failed to have a significant impact on the pair, with buyers jumping back in at progressively higher lows. The five-year trendline, which held support during previous sell-offs, continues to hold strong, giving reason for bulls to remain optimistic.