USD / JPY bounces along with Treasury yields and recovers the 114.00 level

  • USD / JPY rallied above 114.00 amid optimistic sentiment and the rebound in US Treasury yields.
  • The US dollar tries to bounce after the Fed Chairman Powell hit.
  • Japanese investors return and volatility persists ahead of second tier US data.

The USD/JPY it keeps the high ground above the 114.00 level. having found strong buying near the 113.90 region, as risk appetite returns to markets in the aftermath of the Fed. At time of writing, the pair remains at the daily high zone around 114.25.

Powell patient on rate hikes

The Fed announced the long-awaited tapering on Wednesday, reducing bond purchases by $ 15 billion a month from this month. Although Fed Chairman Jerome Powell’s patient approach to rising interest rates boosted market sentiment while crushing US Treasury yields along with the dollar.

So far this Thursday, the USD / JPY pair is recovering above 114.00, following the rally in Treasury yields through the curve, which has put new purchases in the US dollar. Benchmark 10-year yields in the United States are back above 1.60%, rebounding from the post-Fed slide to about 1.54%.

Also, Japanese traders return to the markets after the public holiday on Wednesday, celebrating the new all-time high on Wall Street the day before and collaborating with the rise in par. The Nikkei 225 index is up 1% on the day, close to the 30,000 point level.

On the economic calendar, the weekly publication of jobless applications and commercial data from the United States stands out, while the JPY bulls ignored the optimistic Japanese PMI Jibun Bank / Markit Services for October, which reached 50.7 points compared to 47.8 for the month previous.

USD / JPY technical levels

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