Oil price continues to surge on US withdrawal of Iran deal, WTI hit as high as 71.17 so far before retreat slightly to 70.9. US 10 year yield also follows and is back above 3% now.

In the currency markets, today’s trend continue with USD and CAD trading as the strongest ones. Meanwhile, JPY is trading as the weakest one. The is in line with the development of surging oil and yield.

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Dollar is trading above last week’s high except versus JPY and GBP. Note that Yen’s strength last week was due to falling yields in US and, more so in Europe. Rebound in US yield could now put 110.02 resistance in USD/JPY back into focus.

Action Bias of USD/JPY is looking promising. H row is all upside blue with the current rebound. D action also turned from neutral to upside blue already.

Nonetheless, we’d stay cautious in the pair first, at least until either 110.02 is taken out, or when 6H action bias also turns upside blue.

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