- USD / JPY is moving lower on Thursday and returns some of the positive movement from the previous day.
- Falling US bond yields are weighing on the USD and putting some pressure on the pair.
- A softer risk tone benefits the safe haven JPY and contributes to the pair’s selling bias.
The pair USD/JPY moves with a negative bias during the European session on Thursday, returning part of the gains of the previous day and falling back below the 109.00 level.
The pair has struggled to capitalize on the rebound after the release of the previous day’s FOMC minutes from the week-long lows around the 108.55 support zone and encountered further selling on Thursday. A modest pullback in US Treasury yields has limited the attempt to recover the US dollar. from lows of several months. This, in turn, has been seen as a key factor that has put some downward pressure on the USD / JPY pair.
Bassists have also been inspired by a softer tone in equity markets, which tends to shore up demand for the Japanese yen as a safe haven. That said, the drop remains supported, at least for the time being, amid fresh clues that the Fed has begun debating about phasing out its bond buying program. This makes it prudent to wait for some subsequent selling before positioning for any further bearish moves.
Market participants are now waiting for the US economic calendar, which includes the release of the Philadelphia Fed Manufacturing Index and initial weekly jobless claims, to give the pair some boost. Apart from this, US bond yields will also influence USD price dynamics. Investors will also follow the signals of the broader market risk sentiment to seize some significant opportunities around the USD / JPY pair.
USD / JPY technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
