USD/JPY has been thrown back and forth by surging oil prices (weaker JPY) and declining long US yields (stronger JPY) for a while now. Economists at Danske Bank expect the pair to edge higher as US yields lift off. 'With a prolonged ‘state of emergency' in several regions including Tokyo extended to mid-September, the domestic economy will remain weak through Q3, adding upwards pressure on USD/JPY.' 'We expect high commodity prices to continue to weigh on the yen going forward.' 'We think USD/JPY has further to go, as the US economy outpaces Asia not least due to the stronger position in the vaccine race vs.

https://www.fxstreet.com/news/usd-jpy-to-march-forward-as-us-yields-race-higher-danske-bank-202108190722

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