- USD/JPY extends the previous day’s bearish momentum with a slower pace.
- US Treasury bond yields ease amid mixed news, unimpressive Fed talks and Japan trade numbers.
- Market sentiment remains sluggish as traders await US President Biden’s SOTU.
USD/JPY stays pressured around 130.90 while extending the previous day’s pullback from the highest level in a month. In doing so, the Yen pair tracks the recent weakness in the US Treasury bond yields amid the sluggish start of Wednesday’s Tokyo trading. It’s worth noting that mixed Japan data and Fedspeak joins geopolitical concerns to weigh on the quote of late.
US 10-year Treasury bond yields snap a three-day uptrend while retreating from a one-month high of around 3.68% to 3.67% by the press time. The same weigh on the US Dollar Index (DXY), down for the second consecutive day to near 103.30 at the latest. That said, the S&P 500 Futures print mild losses to track Wall Street and portray downbeat sentiment.
Japan’s trade deficit eased to ¥-1,225.6B versus ¥-1,814.6B expected and ¥-1,537.8B prior but the Current Account balance softened to ¥33.4B from ¥1,803.6B previous readings and ¥98.4B.
Elsewhere, Minneapolis Federal Reserve (Fed) President Neel Kashkari told CNN, "We may have to hold rates at a higher level for longer," while adding that he is not forecasting a recession. Following that, Federal Reserve Chairman Jerome Powell said, “Expect 2023 to be a year of significant declines in inflation,” while also adding that if data were to continue to come in stronger than expected, would certainly raise rates more.
It should be noted that optimism surrounding the Japanese government’s wage talks to labor representatives, during March, seems to have favored the optimism at home. However, China’s rejection of the Pentagon's request keeps the geopolitical tension high.
Looking forward, USD/JPY pair traders should rely on the Bank of Japan (BoJ) talks to aim for further downside, especially amid recent hawkish concerns surrounding the Japanese central bank. Also important to watch will be today’s State of the Union (SOTU) speech from United States President Joe Biden. “US President Joe Biden will face Republicans who question his legitimacy and a public concerned about the country's direction in Tuesday's State of the Union speech that is expected to serve as a blueprint for a 2024 re-election bid,” said Reuters ahead of the event.
A U-turn from the 50-DMA, around 132.40 at the latest, directs USD/JPY towards the 130.00 round figure.
Additional important levels
|Today last price||130.89|
|Today Daily Change||-0.20|
|Today Daily Change %||-0.15%|
|Today daily open||131.09|
|Previous Daily High||132.71|
|Previous Daily Low||130.48|
|Previous Weekly High||131.2|
|Previous Weekly Low||128.08|
|Previous Monthly High||134.78|
|Previous Monthly Low||127.22|
|Daily Fibonacci 38.2%||131.33|
|Daily Fibonacci 61.8%||131.86|
|Daily Pivot Point S1||130.14|
|Daily Pivot Point S2||129.19|
|Daily Pivot Point S3||127.9|
|Daily Pivot Point R1||132.38|
|Daily Pivot Point R2||133.66|
|Daily Pivot Point R3||134.61|
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.