The market has responded to the dollar buying pressure following the release of a series of US economic indicators, pushing USD/JPY above the 138 yen level. The May Philadelphia Fed Index improved to -10.4 from the previous reading of -31.3, surpassing market expectations. Additionally, initial jobless claims for the previous week decreased to 242,000 from the previous figure of 264,000.
As a result, the yield on the US 10-year Treasury bond rose further to the 3.62% range. The dollar buying momentum intensified, pushing USD/JPY to update its high at the 138.30 level, while EUR/USD reached a new low at the 1.0789 level.
The dollar buying pressure continues without abating. When the market rises so one-sidedly, it becomes difficult to determine where the rally will stop.
