USD / JPY falls to fresh monthly lows below 113.00 amid weaker Treasury yields

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  • USD / JPY extends Monday’s slide below 113.00, to new monthly lows.
  • The US dollar loses more ground along with Treasury yields.
  • The focus is on Fed Chairman Jerome Powell’s speech and the US PPI figures for new momentum.

The pair USD/JPY is under pressure in the region of monthly lows below the 113.00 level, as the bears remain in control amidst the risk aversion sentiment and renewed decline in Treasury yields from the United States.

Yields resume recent downtrend following a temporary rally on Monday, as the Fed’s patience on rising interest rates has prompted the market to lower its expectations.

Benchmark 10-year US yields are down 1.30% on the day, currently trading at 1.478%. In the meantime, Fears about China’s indebted real estate sector benefit appetite for perceived riskier assets like the Japanese yen, while doing well for demand for US Treasuries, driving yields down.

As for the yen, the news that the Japanese prime minister, Fumio Kishida, is looking to compile an economic stimulus package on November 19 helps sentiment around the local currency,

The focus is now on the release of US IPP producer price data and Fed Chairman Jerome Powell’s speech in search of new business opportunities.

At the time of writing, the pair is trading at 112.83, shedding 0.40% on the day.

USD / JPY technical levels

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