USD/JPY flirts with weekly low amid broad-based USD weakness, holds above mid-135.00s – by hareshmenghani USDJPY BOJ Fed Bonds Currencies
The Fed-BoJ policy divergence could lend support to the pair and help limit any further losses.USD/JPY pair
attracts some sellers following an intraday uptick to the 136.45 area on Wednesday and moves further away from the YTD peak touched the previous day. Spot prices slide closer to the mid-136.00s during the first half of the European session, though any meaningful corrective decline seems elusive.retracement slide from a multi-week high turns out to be a key factor exerting some pressure on the USD/JPY pair.
In fact, the incoming BoJ Governor Kazuo Ueda and Deputy Governor nominee Shinichi Uchida recently stressed the need to maintain the ultra-loose monetary policy to support the fragile domestic economy. In contrast, the US central bank is universally expected to stick to its hawkish stance for longer and continue hiking interest rates in the wake of stubbornly high inflation.
The prospects for further policy tightening by the Fed remain supportive of elevated US Treasury bond yields and favour the USD bulls. Apart from this, signs of stability in the equity markets, bolstered by the upbeat Chinese PMIs, could undermine demand for the safe-haven Japanese Yen . This, in turn, should lend some support to the USD/JPY pair and help limit the downside.
Hence, it will be prudent to wait for strong follow-through selling before confirming that the USD/JPY pair's recent appreciating move witnessed over the past month or so has run out of steam. Traders now look forward to the release of the US
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
USD/JPY: Yen vulnerable to a further correction lower – MUFGUSD/JPY surged to its highest level in two months above 136.00 on Friday. There is scope for further upside in the near-term, economists at MUFG Bank
Read more »
USD/JPY Price Analysis: Seesaws nearby the YTD high, around 136.20sThe USD/JPY drops from around YTD highs around 136.55 and hits a daily low of 135.91 before reclaiming the 136.00 figure on Monday. At the time of typ
Read more »
USD/JPY Price Analysis: Bears seek a break in trendline supportThe US Dollar fell from a seven-week high on Monday, tracking a slide in US Treasury yields which has lifted the Yen into test support structure in US
Read more »
USD/JPY steadies above 136.00 as yields pause previous retreat, BoJ dovish stance appears safeUSD/JPY steadies above 136.00 as yields pause previous retreat, BoJ dovish stance appears safe – by anilpanchal7 USDJPY BOJ YieldCurve RiskAppetite CentralBanks
Read more »
USD/JPY Price Analysis: Grinds higher around 136.50 within monthly rising wedgeUSD/JPY Price Analysis: Grinds higher around 136.50 within monthly rising wedge USDJPY Technical Analysis SwingTrading ChartPatterns SupportResistance
Read more »
USD/JPY now focuses on the 137.90 level – UOBAccording to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, extra gains in USD/JPY target the 137.90 level in the near term.
Read more »