untitled design

USD / JPY bounces from two-month lows to the 109.70 zone

  • The yen falls sharply as US yields soar in US time.
  • The dollar gains ground and cuts losses, DXY rises 0.24%.

The USD/JPY it rose decisively the next day, rising sharply from two-month lows near 108.70 to 109.67. It is hovering around 109.50, having the best day in two weeks, facing resistance around the 100-day simple moving average at 109.60.

Fed’s Clarida Comments Boost the USD

A lower-than-expected reading from ADP’s private employment report earlier on Wednesday sent the dollar lower. USD / JPY bottomed at 108.69, the lowest level in two months. It then bounced sharply, supported by the Fed’s Clarida comments and ISM service sector data.

July’s ISM services sector hit 64.1, beating expectations. Around the same time, Fed Vice President Clarida offered aggressive expectations. Around the same time, Fed Vice President Clarida offered aggressive remarks. He said the economy could justify interest rate hikes in early 2023.

Minutes later, the US dollar jumped across the board, erasing most of its losses. The DXY turned positive and was up 0.24%. Treasuries plummeted within minutes. The 10-year US yield rose from a monthly low of 1.12% to 1.21%, boosting the dollar and weakening the Japanese yen.

Technical levels

.
Source Link

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular