USDJPY

The major of USD/JPY has been remarkably quiet while the fireworks have went off elsewhere, and this can be explained by the fact that both currencies can see safe-haven flows during times of panic.

The USD has held up on the expectation of higher rates while the Japanese Yen has been bid relatively-well elsewhere, like EUR/JPY or GBP/JPY, as carry trades unwound. But with inflation remaining high and the Fed geared up to hike rates next week, which may lead to a series of rate hikes thereafter, there’s been a bullish factor in USD/JPY that’s offset the Yen-strength seen elsewhere.

USDJPY gave a strong bull move to break the highs now it has come back to retest it. We'll take a buy from here to see if this level holds up.