The USD/JPY currency pair reached a new multi-month high earlier today at ¥158.41.

1. The USD/JPY currency pair rose again over the past day to trade at a new 5-month high some hours ago before giving up some of its gains. This was partly due to residual USD strength backed by a bullish long-term trend, but the immediate cause was more the continuing weakness of the Japanese Yen. Yen weakness is clearly disturbing to the Bank of Japan, which finds itself unable to meet a long-anticipated second-rate hike due to continued weak wages growth. The Bank has warned off Yen weakness but may not be able to do much, as was also the case over recent years, so trend and momentum traders will probably have good reason to be long of this currency pair.
2. There is generally a more risk-on environment in the markets, and Bitcoin is no exception to this, as it again trades above the big round number at $100,000 for the first time in a few weeks, with the record high now in sight although still some way off.
3. Global stock markets have mostly risen over the past day, led higher by gains in the technology section. NVIDIA reached a new all-time high yesterday.
4. In the Forex market, since today’s Tokyo open, the strongest currency has been the New Zealand Dollar while the weakest currency has been the Japanese Yen. The US Dollar is in a strong bullish trend, and it traded at a fresh 2-year high price last week. The EUR/USD currency pair and the USD/JPY currency pair remain within valid long-term trends, although the EUR/USD is retracing and this trend is starting to look questionable.
5. The US 10-Year Treasury Yield is near a multi-month high and will attract interest from trend traders on the long side. Some CFD brokers offer this to traders, and micro futures are available on the CME.

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