USDJPY SIGNAL 07-03-22 : An extension of the recent strong USD rally assisted USD/JPY to regain positive traction on Monday.

• The Russia-Ukraine crisis continued benefitting the greenback’s status as the global reserve currency.
• An uptick in the US bond yields further inspired bullish traders and remained supportive of the uptick.

The USDJPY pair traded with a mild positive bias through the first half of the European session, albeit seemed struggling to capitalize on the move beyond the 115.00 psychological mark.

USDJPY SIGNAL : The pair attracted some buying on the first day of a new week and recovered a part of its heavy losses recorded on Friday to over one-week low amid an extension of the strong US dollar bullish run. A further escalation in the Russia-Ukraine war continued weighing on investors’ sentiment and benefitted the greenback’s status as the global reserve currency.

In the latest developments, Russian forces intensified attacks on Ukraine and attempts at a ceasefire to allow civilians to evacuate from the besieged city of Mariupol failed. Moreover, Russian President Vladimir Putin warned that the war in Ukraine would continue. This, along with Friday’s upbeat US jobs report, pushed the USD to the highest level since May 2020.

USDJPY SIGNAL : The greenback further drew support from an uptick in the US Treasury bond yields, which was seen as another factor that inspired bullish traders and acted as a tailwind for the USDJPY pair. The uptick, however, lacked bullish conviction, warranting some caution before positioning for any meaningful upside amid absent relevant market-moving economic releases.

Nevertheless, the USDJPY pair, for now, seems to have snapped two successive days of the losing streak and remains at the mercy of the USD price dynamics. Hence, the market focus will remain glued to the third round of Russia-Ukraine ceasefire talks. Earlier this Monday, Russia said that it will hold fire and open six humanitarian corridors to allow civilians to escape.

Confuse Which Broker is best ? , Here you can find the best regulated broker