# USD/JPY hits fresh monthly highs as widening US/Japan rate differential weighs on the yen — Octa

> USD/JPY reached a fresh monthly high of 104.462 in early trade on Thursday. US 10-year yields rose more than 4 basis points to nearly 1.06%, widening the US/Japan rate differential. Risk appetite also recovered after Wednesday's losses in US equities.

- Date: 2021-01-28 · published 2021-01-28T12:00:00.000Z
- Category: macro · region Japan · magnitude low
- Page: https://feedsoft.ai/events/49394-usd-jpy-hits-fresh-monthly-highs-as-widening-us-japan-rate-differential-weighs
- Commodities: [Japanese Yen (JPY per USD)](https://feedsoft.ai/c/USDJPY.md)

## Why it matters

A wider yield gap favours flows out of yen and into dollars, which weakens the yen and raises the yen cost of dollar-priced imports such as feed grains and meal. A stronger dollar also tends to weigh on dollar-denominated commodity prices.

## Read by commodity

- USDJPY: bullish ▲

## Sources

- octaafrica.net: https://www.octaafrica.net/markets/news/view/877858/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.