The USD/JPY pair spiked to a fresh weekly high at 109.48 in the US afternoon following the comments from U.S. Treasury Secretary Steven Mnuchin. After the initial reaction, the pair retreated back to 109.35, where it's still recording a daily gain of %0.45.
Mnuchin argued that the tax reform would happen weather the healthcare reform was done or not. The major equity indexes extended their daily gains afterwards and both the Dow Jones Industrial Average and the S&P 500 are up nearly 1% on the day. The improved risk sentiment is also reflected upon the U.S. T-bond yields, with the 10-year reference gaining 1.85% on the day. Higher yields translated into a stronger greenback, helping the DXY rise back to daily opening level.
Earlier during the day, the yen weakened against its rivals after Bank of Japan (BOJ) Governor Kuroda suggested that it was too early to talk about an exit strategy from the current monetary policy. Despite today's selling pressure on the yen, the currency could find some demand as a safe-haven before this weekend's elections in France, and help the dair erase some of its weekly gains.
The pair could face the initial hurdle at 109.80 (200-DMA) ahead of 110 (psychological level) and 110.80 (Mar. 27 high). To the downside, supports are located at 109 (pyschological level) ahead of 108.10 (Apr. 17 low) and 107.75 (Nov. 15 low).
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 securities. 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 Forex 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.