USD/JPY rises to the best levels of the day in third day of gains

USD/JPY rises for the third consecutive day, nearing a one-month high, as oil prices and inflation concerns impact market dynamics.

I wrote yesterday about the tell in USD/JPY and we're seeing the same dynamics play out today. Yields and stocks are both lower but the dollar is higher against the yen. It's the third day of gains in a row and we're now within 20 pips of a one-month high.

I think oil prices are playing an increasing role in larger market dynamics. The 9 month high in oil has the market worried about inflation and 5-year forward 5s are flashing some warning signs.