The USDJPY is testing the high from last week

The USD/JPY is trading at a new high for the day, reaching last week’s peak of 157.918—the highest level since July 18. The day began near session lows at 157.122 but saw an acceleration during the early U.S. session, coinciding with the opening of the U.S. debt market.

U.S. Treasury yields are also moving higher, with the 2-year yield up 2.5 basis points and the 10-year yield up 4.0 basis points.

From a technical perspective, the pair has remained comfortably above its rising 100-hour moving average, currently at 157.054 and climbing. Last week, the price tested this moving average on Tuesday and Wednesday, but buyers stepped in near that level, keeping the bullish momentum intact.

The FOMC rate decision last week further fueled the pair’s upside, as the Fed dialed back its forecast for rate cuts in the dot plot, supporting the dollar.

This article was written by Greg Michalowski at www.forexlive.com.