USD/JPY should trade at 117.50, bullish bias over the coming weeks – Credit Agricole

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USD/JPY should trade at 117.50, bullish bias over the coming weeks – Credit Agricole
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USD/JPY should trade at 117.50, bullish bias over the coming weeks – Credit Agricole USDJPY Banks

Higher US-T yields and a steepening UST curve imply the USD should be stronger

“10Y JGB yields are trading above 0.20% and near the top of the BoJ's tolerance band for the yield's deviation from the central bank's 0% target. Some of the rise in JGB yields is due to the rise in global yields in general, but is also in part due to the market pricing in some chance of theUSD/JPY to soar towards 120 on US T-bond yields rising above the key 2% mark – SocGen

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

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