• USD/JPY soars even as US yields remain steady, probably on month-end flows.
  • Dollar ends three-week negative streak versus the yen rising 150 pips.

The USD/JPY broke back above 109.00 and jumped to 109.35, hitting the highest level since April 13. The pair remains near the top as the US dollar continues with a positive momentum across the board.

The rally of the USD/JPY took place even as US yields remain steady. The 10-year stands at 1.63%, near daily lows. Economic data from the US come in mixed, but numbers had no impact on markets at the moment of the release.

In Wall Street, equity prices are falling. The Dow Jones drops by .62% and the Nasdaq by 0.45%. Usually, risk aversion favors the yen. Correlations are not working on Friday, probably affected by end-of-month lows.

The USD/JPY is about to end the week with important gains, ending a three-week correction. After opening the week near 107.50, the pair is about to close around 109.30.

Next week, the economic calendar is busy in the US with the key April employment report. The latest data shows the US economy is growing at a solid pace. If the trend continues, more analysts will start asking the question of when the Fed will begin tapering. The sooner market participants expect that to happen, the more the greenback could benefit versus the yen.

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