USD/JPY returns above 115.00 and trims weekly losses

  • The dollar strengthens in the market in the previous American session.
  • The yen is still supported by safe haven flows.

The USD/JPY is rising on Friday, strengthening after recovering 115.00. The pair had slipped back to 114.78, the lowest since Feb 4, but then bounced back as high as 115.29. The rises follow the sharp decline on Thursday.

In the previous American session, the USD/JPY has an intraday bullish tone, although to see more gains the dollar has to break the strong barrier of 115.25/30. For hours now, the pair has been mostly trading between 115.10 and 115.20, validating the bounce.

The USD/JPY advance on Friday comes despite still cautious mood among global investors after the Dow Jones had its worst day since November on Tuesday. The situation between Russia and Ukraine is one of the main reasons for the deterioration in the mood of the markets.

The rebound even occurred despite stability in the Treasury bond market. The 10-year rate had climbed to 2.06% on Wednesday, it is at 1.97%. The expectations of a monetary adjustment by the Federal Reserve remain intact, although the possibility associated with an increase of 50 basic points for March has diminished.

Existing home sales data and the Conference Board’s consumer confidence report will be released on Friday. In addition, several officials from the Federal Reserve will speak. Charles Evans and Christopher Waller will speak on the new monetary policy strategy, John Williams on the economic outlook and Lael Brainard on digital currencies.

Technical levels

Source: Fx Street

You may also like