Japanese institutional investors have increased their demand for US bonds amid higher 2- and 3-year bond yields. Higher yields support the US Dollar. However, analysts point out at the absence of major economic news from the USA. This may cause radical changes in the current tendency.
We should also take into account the fact that August is the time of bond payoff. Therefore, we may see big-scale repatriation of income by Japanese investors.
Forex.
According to , the Japanese Yen keeps retracing against the US Dollar. The experts report that USDJPY rebounded from the MF pivot 78.22 and then finished forming wave В(С) inside a bigger-scale upswing represented by wave А/В of level Daily.
A further rally (if the price breaks above 78.72) will probably encounter resistance around 78.76, 78.94/97. A break below 78.22 will indicate the forming of wave А/В of a bigger-scale wave level. If this is the case, the price will meet support at 78.13 and 77.90.
