USD/JPY highest since August and hawkish Yellen - Rabobank

FXStreet (Guatemala) - Analysts at Rabobank noted the impact of Yellen's comments in the US shift and the highest levels in USD/JPY since august..

Key Quotes:

"Meanwhile over in the US Yellen and Dudley both tilted market expectations towards a Fed December hike (as did a strong ISM services survey), pulling equities down (S&P –0.4%) while 2-year Treasury yields jumped 5bp to 0.81%. That helped EUR/USD to slide back under 1.09 (1.0864 at time of writing) again for the first time since mid-August.

With ECB QE-2 about to launch in December as the Fed think of hiking, it would seem we still have further to go on that cross. Of course, Japan is unlikely to want to be outdone if it comes down to more QE, even if their latest minutes could be summarized as “Oil’s well that ends well”: for now USD/JPY at 121.60 is also the highest we’ve seen since August."
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