USD/JPY hits three-week highs above 137.00, extends weekly gains to more than 350 pips
- Japanese yen is among the worst performers on Friday amid high yields.
- US dollar holds onto strong weekly gains amid Fed exceptions.
- USD/JPY heads for the second highest weekly close in decades.
The USD/JPY rose further during the American session and climbed to 137.23, reaching the highest level in three weeks. The pair remains near the highs holding onto strong weekly gains.
The Japanese yen is falling across the board on Friday while the US dollar is stronger. Higher yields weighed on JPY that failed to benefit from risk aversion. The Dow Jones is falling 0.88% and the Nasdaq 2.09%.
The greenback, measured by the DXY trades at one-month highs above 108.00, up 0.56% for the day supported by expectations about the Federal Reserve. Market participants continue to see more rate hikes after the latest round of economic data and following the FOMC minutes.
From a week ago, USD/JPY is up by more than 350 pips. It is about to post the second highest close in decades. The bullish long-term trend stays intact. The next resistance is seen at 137.80 followed by 138.80, the multi-year high at 139.40 and then attention would turn to 140.00.
The weekly chart shows the pair found support above the 20-week Simple Moving Average, currently at 132.00. A close below should point to a weaker dollar. While above, the bias is to the upside.
USD/JPY weekly chart