- Japanese yen among top performs on Thursday amid lower bond yields.
- US Dollar still affected by the FOMC minutes.
- USD/JPY is about to post the lowest daily close in almost three months.
The USD/JPY is hovering around 138.15/20, holding a bearish tone on the back of a weaker Dollar but also amid a stronger Japanese yen. The pair bottomed at 138.04, the lowest since November 15, before bouncing modestly to the upside.
As long as USD/JPY remains under 138.50, more losses seem likely. The immediate support is the 138.00 zone followed then by the November low at 137.65. The pair is on its way toward the lowest daily close since August 26, another bearish sign.
Dollar under pressure
The US Dollar has been under pressure since Wednesday. The FOMC minutes added to the negative tone. Expectations that the Fed might slow the pace of interest rate hikes as soon as the next meeting, December 13/14 weighed on the Dollar and boosted Treasuries. The US 10-year yield fell to as low as 3.68% approaching the monthly low. The DXY is falling by 0.35%, trading at 105.75, headed toward the lowest daily close since mid-August.
The decline in bond yields boosted the Japanese yen across the board. The currency is among the top performers on a quiet session. Wall Street is closed due to a holyday in the US (Thanksgiving Day).
No economic data is due in the US for the rest of the week. In Japan, on Friday, the Tokio Consumer Price Index will be released. It will be a shortened session in Wall Street that will resume normal activity on Monday.
Technical levels
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.
Recommended content
Editors’ Picks
EUR/USD holds above 1.0700 ahead of key US data
EUR/USD trades in a tight range above 1.0700 in the early European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays above 156.00 after BoJ Governor Ueda's comments
USD/JPY holds above 156.00 after surging above this level with the initial reaction to the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.