Bank of Japan Governor Kazuo Ueda said that higher energy costs were starting to feed into consumer prices. The wage data and comments from Ueda strengthened the case for rate hike from 1.25% to 1.5% in December.

US Dollar Index Forecast as Treasury Yields Rise

The US dollar index surged higher after the release of US jobs data. The index gained nearly 0.31% for the week and closed the week at 102.28. This positive reversal produced constructive weekly candle on the chart.

The two-year Treasury yield increased from 4.46% to 4.52% as the market increased expectations for Fed hike. The rebound in Treasury yields supported positive movement in the US dollar index. Therefore, the index can remain strong over the next few days as Treasury yields continue to rebound.

From a technical perspective, the US dollar index has rebounded from the low of 95.55 in January 2026. The index surged higher to reach a high of 102.945 in October 2026 and remains positive after breaking above resistance at 100.50. This suggests continued positive movement in the US dollar index and the market is expected to buy on any dips.