- USD/JPY posts minimal gains of 0.05% despite falling US 10-year Treasury yields.
- Geopolitical tensions in the Middle East and low economic activity in the US leave operators adrift.
- Japan’s core Consumer Price Index falls to 2.8% year-on-year, with fears of higher inflation amid rising oil prices.
He USD/JPY remains around 149.85 and makes minimal gains of 0.05% on risk aversion momentum, even as US 10-year Treasury yields fall as traders do not expect new increases by the US Federal Reserve (Fed).
USD/JPY remains lower as traders weigh geopolitical developments, economic reports
A light economic calendar in the United States (US) left traders adrift from geopolitical developments and the latest inflation report in Japan. A possible escalation of the conflict in the Middle East threatens to spread to more countries in the region. The region’s leaders would meet in Cairo for a summit.
On the Japanese economic agenda, the core Consumer Price Index (CPI) fell to 2.8% year-on-year, below the 3.1% in August, although above expectations. Although it continued to slow, there are fears that inflation will continue to rise, as oil prices are supported by the escalation of the conflict between Israel and Hamas.
The Bank of Japan’s ultra-loose monetary policy remains dovish, suggesting that the USD/JPY pair could break above the 150.00 signal. However, threats from Japanese authorities to intervene in the markets limited the advance, as market participants eye the next BoJ meeting on October 31.
Meanwhile, Fed officials stated that inflation has dropped but remains high, adding that the US central bank will rely on the data to decide its next policy decision.
USD/JPY technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
