• USD/JPY struggled to preserve its intraday gains or find acceptance above the 115.00 mark.
  • A steep fall in the equity markets benefitted the safe-haven JPY and exerted some pressure.
  • Surging US bond yields continued underpinning the USD and helped limit any deeper losses.

The USD/JPY pair surrendered intraday gains to a multi-day high and has now retreated to the lower end of its daily trading range, around mid-114.00s.

The pair gained positive traction during the first half of the trading on Tuesday, albeit struggled to find acceptance or build on the momentum beyond the key 115.00 psychological mark. The widening of the US-Japanese government bond yield differential was seen as a key factor that acted as a tailwind for the USD/JPY pair.

In fact, the yield on the benchmark 10-year US government bond shot to the highest level since January 2022 amid growing acceptance that the Fed would start hiking interest rates in March 2022. Conversely, the yield on the 10-year Japanese government bond remained near zero in the wake of the Bank of Japan's yield curve control policy.

Moreover, the BoJ reiterated that it will maintain ultra-loose monetary policy at the end of its latest monetary policy meeting on Tuesday. In the post-meeting press conference, the BoJ Governor Haruhiko Kuroda reiterated that the Japanese central bank remains ready to ease policy further without hesitation as needed.

Despite the supporting factors, the risk-off impulse forced investors to take refuge in traditional safe-haven currencies, including the Japanese yen and acted as a headwind for the USD/JPY pair. An extended sell-off in the US bond markets tempered investors' appetite for riskier assets and triggered a steep fall in the equity markets.

This, in turn, was seen as the only factor that attracted fresh selling at higher levels and led to the USD/JPY pair's intraday slide of nearly 50 pips. Market participants now look forward to the release of the Empire State Manufacturing Index for a fresh trading impetus later during the early North American session.

Apart from this, the US bond yields will influence the USD price dynamics. Traders will further take cues from the broader market risk sentiment to grab some short-term opportunities around the USD/JPY pair.

Technical levels to watch

USD/JPY

Overview
Today last price 114.64
Today Daily Change 0.02
Today Daily Change % 0.02
Today daily open 114.62
 
Trends
Daily SMA20 114.94
Daily SMA50 114.28
Daily SMA100 113.07
Daily SMA200 111.36
 
Levels
Previous Daily High 114.65
Previous Daily Low 114.16
Previous Weekly High 115.85
Previous Weekly Low 113.48
Previous Monthly High 115.21
Previous Monthly Low 112.56
Daily Fibonacci 38.2% 114.46
Daily Fibonacci 61.8% 114.34
Daily Pivot Point S1 114.3
Daily Pivot Point S2 113.98
Daily Pivot Point S3 113.81
Daily Pivot Point R1 114.79
Daily Pivot Point R2 114.97
Daily Pivot Point R3 115.28

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD retreats toward 1.0550 as dollar rebounds

EUR/USD retreats toward 1.0550 as dollar rebounds

EUR/USD has lost its traction in the American session and retreated to the 1.0550 area. In the absence of high-tier macroeconomic data releases, the dollar is staging a rebound with the US Dollar Index rising above 103.00 and forcing the pair to edge lower.

EUR/USD News

GBP/USD consolidates its weekly gains below 1.2500

GBP/USD consolidates its weekly gains below 1.2500

GBP/USD has extended its sideways grind below 1.2500 into the second half of the day on Friday with the dollar staying resilient against its rivals. Nevertheless, the pair remains on track to snap a four-week losing streak.

GBP/USD News

Gold loses traction, drops below $1,840

Gold loses traction, drops below $1,840

Gold came under modest bearish pressure in the American session on Friday and dropped below $1,840. The benchmark 10-year US Treasury bond yield stays quiet above 2.8%, helping XAU/USD limit its losses ahead of the weekend.

Gold News

Bitcoin price will bounce to $36,000, but what happens next will leave you shocked

Bitcoin price will bounce to $36,000, but what happens next will leave you shocked

A brief technical and on-chain analysis on Bitcoin price. Here, analysts evaluate where BTC could be heading next. Does the possibility for a cat bounce make sense?

Read more

PANW shows bullish reversal chart pattern after earnings beat

PANW shows bullish reversal chart pattern after earnings beat

PANW stock benefits from continued strong revenue growth. Palo Alto Networks now nearly services half of the Global 2000. PANW stock is showing a bullish reversal pattern on its daily chart.

Read more

Forex MAJORS

Cryptocurrencies

Signatures