The USDJPY pair was forced to once again test the 130.40 area earlier on Thursday. As a result of the dollar’s continued weakness in the region.
Selling interest in the dollar weighs on the USDJPY.
Due to the notable decline in USDJPY and some safe haven demand. In response to still-unabated banking sector fears, Monday’s promising start to the new trading week was somewhat diminished.
The daily spot advance contrasts with another strong session for US rates across the curve, which manage to build on gains made earlier in the week, while the JGB 10-year yield continues to consolidate below the 0.40% mark.
US Consumer Confidence surprised to the upside in March.
On Tuesday, there were no data announcements in Japan, diverting attention to those in the US. The House Price Index as measured by the FHFA increased 0.2% MoM in January, while the Consumer Confidence as evaluated by the Conference Board exceeded expectations at 104.2 for the current month.
The preliminary Goods Trade deficit is seen at $91.63 billion. the break below 129.63 (monthly low March 24) would allow access to 128.08 (monthly low February 2) and eventually 127.21. The USDJPY is declining by 0.38% at 131.01. (2023 low January 16). But, the first obstacle is at 132.38 (55-day SMA), followed by 133.00 (weekly high March 22), and finally 135.11. (Weekly high March 15).
