Up, up, and away.
There's still no stopping the upwards trajectory in yen pairs as the currency continues to implode in March trading. USD/JPY has now climbed above 123.00 as buyers continue to target the 125.00 level next.
It's a tough situation for Japanese officials as the pace of the move is rather uncomfortable. I reckon the 125.00 level should provide some natural resistance but there are other issues for the BOJ such as the one here today. 10-year JGB yields have now hit their supposed upper limit of 0.25%:
That's a key line that the BOJ will have to defend and it is a tough one considering the continued surge in bond yields globally. 10-year Treasury yields are up nearly 2 bps on the day to 2.51% currently.
One pair that continues to captivate me over the past few weeks has been AUD /JPY and the early moves today suggest a potential for a ninth straight week of gains. That's really something.
