USD/JPY rises further above 109.10 as Wall Street recovers
|- US dollar strengthens after US data, ahead of the FOMC statement.
- Yen falls across the board on risk appetite and higher US yields.
The USD/JPY pair rose further during the American session amid an improvement in market sentiment. It printed a fresh daily high at 109.19. The pair partially closed the weekly opening gap and as of writing, stands at 109.15, up 25 pips for the day.
Earlier today it fell to test the weekly lows around 108.70/75 but managed to remain on top and then recover ground on the back of a stronger US Dollar. The DXY rose further above 98.00 to 98.10, the highest level since December 2.
Wall Street is posting significant gains, recovering after Monday’s slide. The Dow Jones gains 0.80% and the Nasdaq 1.30%. Higher equity prices and also US yields weigh on the yen. The US 10-year yield rose from 1.57% to 1.64%.
Developments around the coronavirus continue to dominate market sentiment. Today investors appear less pessimist about the impact on the global economy, helping equity prices recover.
Trump tweets about the Fed, FOMC meeting starts
The two-day meeting of the FOMC began today. On Wednesday, the central bank will announce its decision. No change in rates is expected. A few minutes ago, US President Donald Trump tweeted commenting on Fed’s policy:
“The Fed should get smart & lower the Rate to make our interest competitive with other Countries which pay much lower even though we are, by far, the high standard. We would then focus on paying off & refinancing debt! There is almost no inflation-this is the time (2 years late)!”
His message had no impact on USD/JPY that is holding to gains. If the pair consolidates above 109.10, the short-term bias will favor the upside, while a break lower, could send it back to the previous range between 109.10 and 108.75.
More Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.