Currently, USD/JPY is trading at 112.24, up 0.06% on the day, having posted a daily high at 112.28 and low at 112.10.
USD/JPY is better-bid in the Tokyo open while there is a lack of volatility in the market and the dollar remains robust. There are plenty of risks ahead this week and the yen will trade in the broader theme of spreads and safe haven play while bears attempt to try cap rallies.
US 10yr treasury yields ranged between 2.28% and 2.30% before jumping to 2.31% and 2yr yields rose from 1.51% to 1.54%. The Fed fund futures yields firmed, now pricing the chance of a December rate hike at 87%. The US dollar index is 0.2% higher on the day, possibly forming H&S bottom.
Meanwhile, Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart shows that the price remains near its daily low, trading within the 100 and 200 SMAs:
"Technical indicators are heading nowhere but within a negative territory, keeping the risk towards the downside for the upcoming sessions. The 111.60 level is quite a strong static support, with a break below it needed to confirm a steeper slide ahead, firstly towards 111.20, another relevant static support area," Valeria explained further.
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