USD/JPY sheds 20 pips to hit session lows, ignores Kuroda's comments

  • USD/JPY has shed 20 pips in the last hour. 
  • The dollar is on the defensive, possibly due to dovish Fed expectations. 
  • AUD/JPY selling may have weighed over USD/JPY. 

USD/JPY is feeling the pull of gravity this Tuesday morning in Asia with the US dollar losing ground against most majors except the AUD.

The currency pair is currently trading at 108.34, having shed 22 pips over the last sixty minutes or so. 

The moderate drop could be associated with the broad-based US Dollar weakness, as represented by the Dollar Index, which is currently trading at 97.45 - down 15 pips from the overnight high of 97.60. 

The greenback has come under pressure, possibly due to the widespread expectation that the Federal Reserve would lay the groundwork for a rate cut later this year. The central bank is scheduled to announce its decision on interest rates at 18:00 GMT on Wednesday. 

Also, the selling in the AUD/JPY cross may have added to the bearish pressure around the USD/JPY pair. The JPY cross fell to fresh five months lows earlier today in response to dovish RBA minutes and a weaker-than-expected Aussie house price index figures. 

Bank of Japan's Kuroda, while speaking in parliament earlier today, took note of the heightened uncertainty in the global economy. His dovish comments, however, have been ignored by markets. Moreover, it is generally accepted by now that the BOJ has exhausted its ammo and the central bank is unlikely to achieve its 2% inflation target any time soon. 

Looking forward, the pair may remain under pressure, courtesy of dovish Fed expectations. 

Pivot levels

    1. R3 108.96
    2. R2 108.84
    3. R1 108.69
  1. PP 108.58
    1. S1 108.43
    2. S2 108.32
    3. S3 108.17




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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD turns down as Trump touts trade hopes, after Lagarde's debut

EUR/USD is trading below 1.1130 after President Trump tweeted that the US is getting close to deal with China. Earlier, the ECB left rates unchanged and President Lagarde acknowledged the recent upturn.


GBP/USD retreats further from nine-month highs, nears 1.3100

GBP/USD has extended its decline amid renewed EUR demand within ECB’s monetary policy announcement. UK elections weigh as polls show a further narrowing in Conservatives’ advantage.


Federal Reserve leaves rates unchanged, is undecided about the future

The Federal Reserve kept interest rates steady and the governors indicated that they expected little change in the economy or Fed policy for the next year.

Read more

Gold soars with ECB, retakes 1,480.00

The bright metal hit a fresh weekly high at 1,483 as dismal US data and ECB’s monetary policy announcement added pressure on a vulnerable dollar. Spot gold at critical Fibonacci resistance.

Gold News

USD/JPY: Greenback jumps to four-day highs as trade tension ease

USD/JPY broke above the 109.00 handle as Trump is upbeat on the trade deal. Resistance is seen at the 109.26 and 109.43 price levels.