- USD / JPY continues to decline for the third day in a row.
- The US dollar DXY index succumbs to the pressure and falls below 91.70 at multi-week lows.
- Higher yields on US Treasuries weigh on the US dollar.
The pair USD/JPY has started the day with a negative tone and has hit a multi-week low near 108.75 before bouncing 30 pips to the intraday high of 109.05 at the start of the European session on Wednesday.
At the time of writing, USD / JPY is trading at 109.00, shedding 0.06% on the day.
The global sell in the US dollar DXY index pushes the USD / JPY pair by a negative movement for the third day in a row. The US CPI consumer price index stood at 0.6% in March on Tuesday, up 2.6% year-on-year, prompting a selloff around the dollar.
On the other hand, the governor of the Bank of Japan, Haruhiko Kuroda, has shown the usual cautious tone on growth and has reaffirmed the continuation of a powerful monetary easing to achieve the inflation target of 2%. of the central bank. The economy is gradually recovering, although risk factors remain sloping to the downside. Investors see this as a signal to delay a rate hike by the central bank, which will negatively affect the Japanese yen.
A sudden spike in US Treasury yields of 1.61% to 1.63% are now offering some support to the dollar. This, in turn, has helped the pair to regain the 109.00 level during the session.
For now, the dynamics around the US dollar before US Fed Chairman Jerome Powell’s speech will continue to influence the pair’s performance.
USD / JPY technical levels
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