USDJPY Is Still Pointing Towards 2020 Highs

Today we will talk about USDJPY and its correlation with 10Y US Notes.

For the beginning, we want to show you a nice reversal from the lows on DXY/ZN (US dollar against 10Y US Notes) ratio chart, which has caused a strong and impulsive rally on USDJPY, as we know that 10Y US Notes is negatively correlated to USDJPY.

Yen. Image Source: Pixabay

Well, seems like there's room for more upside as we see an unfinished five-wave cycle that can cause a bigger recovery for the US dollar or maybe more weakness for the 10Y US Notes, but the fact is that in both cases we can expect a bullish continuation on USDJPY.

DXY/ZN, Daily

(Click on image to enlarge)

If we take a look at the USDJPY daily chart, we can see it nicely rising up towards 2020 March as expected already at the beginning of January. For that article click here.

It looks like there's room for more upside to complete a five-wave cycle, so be aware of more gains up to 112 area before will see a slowdown.

USDJPY, Daily

(Click on image to enlarge)