USDJPY daily
USD/JPY has added to gains, rising 75 pips to just above 143 for the first time since July 6.
I made the case for USD/JPY longs on Friday because the change to yield-curve control doesn't undo the carry trade:
The path for the yen is lower until the Ministry of Finance says it's not. Given the booming risk trade, I can't see any reason to buy the yen or to take off USD/JPY longs.
The trade is getting help from the dollar side of the equation today as Treasury yields move higher. US 10-year yields are up 4 bps to 3.99% with a potential break of 4% and the July high of 4.09% adding to momentum.