EUR/JPY is without a doubt the chart of the day.
With the Bank of Japan keeping YCC in place today the pair jumped and now it has just taken out both the 2015 high and the 150.00 psychological level.
This high now stretches all the way back to 2008 and all the agony that Europe has suffered since then. It highlights the critical importance of rate differentials as the ECB continues to hike and the Bank of Japan stays on the sidelines.
A close above 150.00 would be particularly notable and it could be clear sailing to 165.00. That would have to go with strong economic resilience in Europe along with enough of a moderation in inflation not to spark worries about central banks overdoing it and enough for the BOJ to keep YCC in place.
