- The US dollar gains momentum against the G10 currencies, but the yen is the best performer.
- USD / JPY continues to move in a two-week range around 114.00.
The USD/JPY It peaked Thursday at 114.26 and then turned lower. It recently hit a fresh daily low at 113.68, and remains close to the lows, with a clear short-term bearish bias.
The yen is the best performer amid declining US yields. The 10-year yield is trading at daily lows at 1.53%. US stocks are mixed on Wall Street, still holding most of Wednesday’s gains.
Despite the recent US economic report and the FOMC meeting, USD / JPY continues to move in a range between 113.40 and 114.40. The main trend continues to point north, but the momentum of the dollar subsided.
After the Fed, the focus shifts to the NFP report
The Federal Reserve on Wednesday announced a slowdown in its asset purchase program, as expected. Jerome Powell played down expectations about rate hikes in the short and medium term. Stocks rose and US yields fell after the FOMC meeting.
The focus is now on official US employment to be released on Friday. Wednesday’s ADP report beat expectations, and on Thursday, the jobless claims report showed a new low since March 2020 for initial and continuing claims.
On the NFP, TD Securities analysts say a strong pace of payrolls should broadly support the US dollar. “A strong payroll report is likely to bolster post-FOMC prices, suggesting that the Fed will allow inflation to rise further. This could keep market prices unchanged, but should provide additional support to those who push the curves and BE TIPS. “If the data causes US yields to rise, the USD / JPY could be among the highs. biggest winners.
Technical levels
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