USDJPY regains some positive traction snapping a three-day losing streak.
On the first day of a new week, the USDJPY pair attracts some dip-buying. And appears to have halted a three-day-old corrective slide from the 151.70 range. Or its highest level since October 2022, reached last Tuesday. Spot prices are currently trading just above the mid-149.00s, up approximately 0.15% on the day. And are supported by a minor US Dollar (USD) rise. Albeit bullish conviction is lacking.
A minor increase in US bond yields helps to reignite USD demand and gives support.
US Treasury bond yields are rising, which helps. The USD Index (DXY), which measures the value of the US dollar against a basket of currencies. Recovered some of Friday’s post-US jobs data slide to a six-week low. Aside from that, the Bank of Japan’s dovish approach, combined with the risk-on atmosphere, is viewed. Eroding the safe-haven Japanese Yen (JPY) and serving as a tailwind for the USDJPY pair.
Bank of Japan’s small tweak to its yield curve control (YCC) policy.
In truth, the Bank of Japan’s small tweak to its yield curve control (YCC) policy indicated a gradual withdrawal from the decade-long accommodating monetary policy settings. In addition, Bank of Japan Governor Kazuo Ueda stated on Monday. That there is doubt about whether Japan will have a positive wage and inflation cycle, as we forecast, and he restated the Bank’s commitment to patiently sustain policy easing to promote economic activity.
Moreover This is a significant departure from the Federal Reserve’s (Fed) somewhat hawkish perspective. Which leaves the door open for additional rate hikes in the aftermath of the US economy’s resiliency. Investors, on the other hand, appear certain that the US central bank will retain the status quo in December. And their views were reinforced. On Friday by softer-than-expected US monthly employment data.
Furthermore Aside from that, rumors that Japanese authorities will interfere in the FX market. To combat a protracted fall in the home currency contribute. To the USDJPY pair’s upside being limited. As a result, bullish traders should exercise care before preparing for any further intraday appreciating move. In the absence of any relevant marking changing economic news from the US.
