USD/JPY on a nice run
USD/JPY just touched the highest since December 2. That's after solid gains in three of the past four days.
Two things have been aiding the rebound:
Stability in stocks
A rebound in bond yields
Technically, USD/JPY was threatening a six week low at the start of the week but it's made steady gains with the market focused elsewhere.
The criticism of USD/JPY is that it's boring and if you look at the chart, there hasn't been much to get excited about. But the narrowing range isn't going to last forever.
If I exclude the day-to-day and the technicals, what's impressive about USD/JPY is that it's held steady in a tough environment.
Aside from the wedge, there are waves of resistance up to 114.65 but this is a trade that's worth carefully watching because if it can get above that, it could take off.