From the desk of Steven Strazza @Sstrazza and Ian Culley @Ianculley
The Japanese yen continues to be front and center, as the safe-haven currency can’t seem to find its footing.
In a market where risk assets are struggling to catch any sort of sustained bid, finding investment opportunities in yen has been a great strategy. It continues to work.
Long USD/JPY has been one of the best trades on the sheets this year – by far! And it looks to be continuing its upward trajectory, as it hit fresh 20-year highs earlier this week.
Aside from providing a stellar trading opportunity, the current intermarket relationship between this forex cross and the bond market may reveal the near-term direction of the US 10-year yield.
Let’s take a look.