USD/JPY rises to 158.00

After the previous attempt to rise above 158.00 on Friday last week stalled, buyers are emerging on the dip again to test the level of the figure today. The slight rise in bond yields this week helps do at least that. But traders are not showing much respect for BOJ Governor Ueda’s comments earlier in the day.

He gave a little warning hereNoting that the Bank of Japan may continue to raise interest rates again in July. I find it difficult to ignore a statement like this, but USD/JPY traders are certainly not heeding this warning – at least for now.

Looking at the technical details, a strong rally above 158.00 would give dip buyers more momentum. However, we are approaching the intervention zone, so the risk and reward of further gains is somewhat questionable at this point.

After that, US retail sales data later today will be the data to watch as it impacts the pair further today.