Japan Raises Interest Rates to 31‑Year High, US Treasury Yields Cross 5%

Japan's highest interest rate level in 31 years could support the JPY, but the rise in US Treasury yields above 5% creates an environment that strengthens the USD. The RSI is around 50, while the MACD is below its signal line, indicating market indecision. The position above the 20-day SMA but below the 50-day SMA suggests that the price may remain under slight upward pressure in the short term. The balance of these two factors makes it likely that USDJPY will show a slight upward trend (strengthening USD) within 1-3 days. However, due to high volatility, the direction of the net movement may remain uncertain.

Japan's rise to its highest interest rate level in 31 years and US Treasury yields exceeding 5% could negatively impact global risk appetite. The N225 has risen 2.89% in the last 24 hours and its RSI at 64 is approaching overbought territory, increasing the risk of a short-term correction. The MACD is positive and the price is above the SMA20/50, but the news flow highlights the pressure of rising interest rates on equity valuations. Nevertheless, due to the strong technical picture, a bearish signal is not definitive; the outlook is mixed. In the short term, downward pressure can be expected, but support levels may be tested.

Japan's interest rate hike to a 31-year high and US Treasury yields surpassing 5% could reduce global risk appetite and increase safe-haven demand. The DXY is currently trading sideways at 100.21; with an RSI of 44, it is neutral, and the MACD is slightly negative below the signal line. Rising bond yields typically support the dollar, but the interest rate hike in Japan may lead to unwinding of yen carry trades, putting pressure on the dollar. Due to these conflicting effects, directional uncertainty is high; however, if the bond yield effect dominates, limited upward movement in the DXY could be seen. In the short term, the 100.30-100.50 resistance zone should be monitored.