- Yen weakened by rise in stocks, favored by rally in bonds.
- USD/JPY holds above 130.00, fails to assert itself above 131.00.
The USD/JPY it is trading flat on Wednesday around the 130.80 area, having managed to break away from the lowest area in months. The pair moves without a clear definition for the day, maintaining a clear downtrend.
The pair remains weak in the face of a general drop in the dollar. In addition, the yen in the market is favored by the drop in sovereign bond yields. Several US and European stocks are showing low returns in weeks given the latest inflation data, which points to a slowdown. Equity markets are rising on Wednesday, which is a negative for the Japanese currency.
It will be a challenge for the pair the data that comes from the US with the ISM manufacturing on Wednesday and then on Thursday the ADP report and on Friday the official employment report, with non-farm payrolls and the unemployment rate. Besidesthe minutes of the last meeting of the Reserve will be published on Wednesday Federal which can have a major impact on expectations.
At the moment, USD/JPY is managing to preserve the 130.00 zone. It fell as low as 129.47 on Tuesday, but then bounced. To relieve the bearish pressure it needs to rally and hold above 131.50. In the opposite direction, a confirmation below 130.00 would enable further declines.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
