- The US dollar was 0.3% lower on Wednesday.
- US 10yr treasury yields initially rose from 2.42% to 2.47% - the highest in six months.
- Trump is not decided on Fed chair yet
- US stocks hit the skids on poor earnings reports.
USD/JPY tallied up a score on the 114 handle to a three-month high of 114.24 before the US stock market handed control over to the bears on poor earnings, dragging the yen higher to 113.50.
Currently, USD/JPY is trading at 113.66, down -0.05% in Asia, having posted a daily high at 113.77 and low at 113.53 so far. FXStreet's Technical Confluences Indicator shows us that the price is oscillating just below a key 38.2% fibo level at 113.76.
Meanwhile, US 10yr treasury yields initially rose to the highest levels in six months before dropping back to 2.43% from 2.47%. while the dollar was weaker in the session, the divergence between the Fed and BoJ continues to drive the broader tone and the Fed's fund futures yields were still pricing in the chance of a December rate hike at 99%.
Valeria Bednarik, chief analyst at FXStreet explained that the pair is trading with a short-term bearish stance, according to the 4 hours chart, as technical indicators head south, with the Momentum already below its mid-line and the RSI indicator at 52, both supporting additional declines ahead"
"Moreover on a break below 113.23 the weekly low. In the mentioned chart, however, the price remains well above bullish 100 and 200 SMAs, suggesting that an upcoming decline could be considered corrective, as long as it holds above the 100 SMA, now at 112.75.
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.