- Yen gains momentum in the market due to stability in the stock markets and fall in bond yields.
- The DXY is barely trading in negative territory, below 92.50.
The USD / JPY is trading around 109.50, the lowest level since March 29. The price resumed its downward correction after the pause on Wednesday. It fell to 109.43 and then had a slight rebound. It remains with a bearish bias in the short term.
The pullback from the 111.00 zone (March 31 high) extended to the 20-day moving average, which is being tested. A drop below would lead to the first daily close below this average since January, showing signs of further weakness ahead. In case of bouncing to the upside, the first resistance is seen at 109.60 / 65 and then it will follow 109.95.
Yields Fall, JPY Rises
On Thursday, the yen is among the currencies that are rising the most in the market. The drop in Treasury yields is one of the key factors. The 10-year rate of the US bond stands at 1.64%, after having been at 1.67% in the Asian session.
The bags do not present significant changes at the moment. The weekly report of requests for unemployment benefits will be known in the US. In addition, Jerome Powell, the chairman of the Federal Reserve, will speak at an event organized by the IMF.
Technical levels
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