USD/JPY remains on lower ground amid the Monetary Policy Report from the Fed

The USD/JPY trades around the mid-point of the daily range, around ¥106.60.
The Monetary Policy Report from the Fed expresses optimism but does not provide hints about future monetary policy.
The pair continues tracking US bond yields.

Yohay Elam FXStreet

The USD/JPY has risen from the daily low of ¥106.51 but remains down some 80 pips on the day. The pair reached a high of ¥107.13 before turning lower to the current levels of ¥106.60. US 10-year Treasury yields fell from the highs of the week to below 2.90%, weighing on the US Dollar. The correlation between the two remains solid.

The Federal Reserve released its Monetary Policy Report. The document that precedes the highly anticipated testimony by Fed Chair Jerome Powell on Tuesday. The report continues stressing a gradual path of rate hikes, with no immediate need for an acceleration. Inflation is set to near 2% later this year. However, the report notes that wage rises do not indicate labor shortage.

Earlier in the day, Japan's inflation report showed a slightly higher than expected headline CPI at 1.4% but no change on Core CPI at 0.9%.

USD/JPY Technical Picture

The USD/JPY may find immediate support at the low of ¥106.51. The next line is the round level of ¥106.00 which served as support. The 15-month low of ¥105.55 is next.

On the topside, ¥107.13 is followed closely by ¥107.30, the September low, and by ¥107.90, the high seen earlier this week.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.