USD / JPY falls to one-week lows, targeting the 115.00 level

Get real time updates directly on you device, subscribe now.

  • USD / JPY was down for the fourth day in a row and fell to a week low on Monday.
  • The prevailing cautious mood benefited the JPY safe haven and put some downward pressure.
  • A strong rally in USD demand did little to impress the bulls or cripple the current corrective slide.

The pair USD/JPY It fell to week-long lows during the middle of the European session, and the bears are now pointing to a move to challenge the key psychological level of 115.00.

The pair struggled to capitalize on its intraday bullish move, instead encountered a fresh offer near the 115.85 zone and was down for the fourth day in a row on Monday. The slide dragged the USD / JPY pair further from a five-year high touched last week and was sponsored by the revival of demand for the Japanese yen as a safe-haven.

US Treasury yields prolonged their recent strong bullish move amid growing acceptance of an eventual Fed takeoff in March 2022. Market bets reaffirmed with the release of the report on Friday. employment, which highlighted a tight labor market and pushed the yield on the benchmark 10-year US government bond to a two-year high.

A prolonged sell-off in the US bond markets hurt investor sentiment, which was evident from the cautious mood in the equity markets. This, in turn, forced investors to take refuge in traditional safe-haven currencies, including the JPY, which was seen as a key factor that put some downward pressure on the USD / JPY pair.

Meanwhile, the decline did not appear to be affected by a strong rebound in demand for US dollars, bolstered by high yields on US bonds. However, it remains to be seen whether the ongoing corrective pullback marks the end of a month-long uptrend or attracts new buying at lower levels amid the absence of relevant macroeconomic data on the movement of the US market.

Market participants are now awaiting testimony from Fed Chairman Jerome Powell on Tuesday. This will be followed by the latest US consumer inflation figures on Wednesday, which together with Friday’s release of US retail sales data will influence USD price dynamics and provide a significant boost. to the USD / JPY pair.

Technical levels

.

Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.

buy kamagra buy kamagra online $255 payday loans online same day no denial payday loans direct lenders only