- USD / JPY rises for the third day in a row after having the highest daily close in a month and a half.
- A slight decline in stocks and Treasury bond yields limited the pair’s gains and favored a decline.
The USD / JPY retraced from the six-week highs to the 110.30 zone and was trading around 110.35 / 40, in positive territory for the third day in a row.
The pair had previously extended this week’s solid bounce from the horizontal support at 109.10 and reached 110.56, the highest since August 11. The boost came from a strong dollar, accompanied by a rise in equity markets and Treasury bond yields.
The prospects of a cut in the Federal Reserve buying program, along with expectations of a rate hike in 2022, lagged behind movements in the bond market. The 10-year rate jumped above 1.40% for the first time since July.
The yen in the last hours recovered favored by renewed fears about the situation of the Chinese giant Evergrande Group. On Friday you should make debt payments and you fear what may happen. Additionally, US new home sales data will be released on Friday and various Federal Reserve officials will speak throughout the day, including Jerome Powell.
Technical levels
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