USD/JPY rises to two-week high above 150.00 as the risk mood improves | Forexlive

USD/JPY has climbed to the highs of the day as US equities turn higher following the open. The S&P 500 is up 34 points, or 0.6% in a bounce from yesterday’s slump.

The US dollar is outperforming broadly today as Treasury yields rise 2-5 bps across the curve.

The Bank of Japan hit a few hawkish notes in today’s press conference but that hasn’t led to a bid in the yen. Instead, USD/JPY is now trading at a two-week high and back above 150.00.

The dollar strength today may be a sign of position squaring ahead of the Fed. There is a chance the FOMC shifts policy to a neutral or more-neutral stance as some inflationary risks rise.