- The dollar extends the recovery against the yen, it remains negative against the rest of the currencies.
- USD / JPY remains bearish, needs to rise above 109.10 to ease pressure.
The USD / JPY rose to 109.08, hit a new high for the day, and then fell back to the 109.00 zone, where it is operating, practically unchanged from Tuesday’s close. In the Asian session, the pair had fallen to 108.74, the lowest level in three weeks.
The extension of the rebound came on the back of a rise in US Treasury yields. The 10-year rate is 1.64%. The rise, however, strengthened the dollar in a limited way, since it remained weak against the rest of the currencies, after a positive opening of the shares on Wall Street. The yen in the market was weakened by the good mood in the equity markets.
It is now expected by the exhibition of Jerome Powell, the chairman of the Federal Reserve at the Economic Club of Washington. Later it will be the turn of the Fed’s Beige Book on the state of the economy.
Technically, the USD / JPY maintains the short-term bearish bias. A rally above 109.10 could ease the downside pressure; while if it exceeded 109.70, the downward correction would be greatly weakened. To the downside, supports below 108.80 are seen at 108.65 and then 108.30 / 35.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
