The MarcetThe Marcet
  • News
  • Business
  • Finance
  • Investing
  • Markets
  • Forex
  • Crypto
  • Forum
  • Videos
  • Rates
    • Stocks
    • Cryptocurrency
    • Forex
  • More
    • Companies
    • Inflation
    • Tech
What's Hot

Video: Elon Musk Apologizes for Endorsing Antisemitic Conspiracy Theory

November 30, 2023

JPMorgan CEO Jamie Dimon to business leaders: ‘Help Nikki Haley’

November 30, 2023

Marvel movies will be Bob Iger’s Disney priority after the cinematic universe suffered recent box office fails

November 30, 2023
Facebook Twitter Instagram
Facebook Twitter YouTube Telegram
The MarcetThe Marcet
Subscribe
  • News
  • Business
  • Finance
  • Investing
  • Markets
  • Forex
  • Crypto
  • Forum
  • Videos
  • Rates
    • Stocks
    • Cryptocurrency
    • Forex
  • More
    • Companies
    • Inflation
    • Tech
The MarcetThe Marcet
Home » USD/JPY corrects further from YTD peak, drops to 139.00s on weaker USD
Forex

USD/JPY corrects further from YTD peak, drops to 139.00s on weaker USD

Press RoomBy Press RoomMay 26, 2023No Comments2 Mins Read0 Views
Facebook Twitter Telegram Tumblr Reddit WhatsApp
Share
Facebook Twitter LinkedIn Pinterest Email

Share:

  • USD/JPY retreats from the YTD peak amid a modest USD pullback from over a two-month high.
  • A softer risk tone benefits the safe-haven JPY and further contributes to the intraday downfall.
  • The Fed-BoJ policy divergence should help limit losses ahead of the US Core PCE Price Index.

The USD/JPY pair comes under some selling pressure on the last day of the week and extends its steady intraday slide through the first half of the European session. Spot prices drop to mid-139.00s in the last hour, reversing the previous day’s positive move to the highest level since November 2022.

The US Dollar (USD) pulls back from over a two-month high touched on Thursday and turns out to be a key factor dragging the USD/JPY pair lower. The Japanese Yen (JPY), on the other hand, attracts some heaven flows amid growing worries of a global economic slowdown and US debt ceiling woes. This further contributes to the offered tone surrounding the major, though any meaningful corrective decline still seems elusive.

A more dovish stance adopted by the Bank of Japan (BoJ), along with the softer domestic data, could act as a headwind for the JPY and lend some support to the USD/JPY pair. In fact, BoJ Governor Kazuo Ueda had reiterated recently that the central bank will continue easing with yield curve control. Furthermore, the Tokyo CPI released this Friday showed that inflation in Japan’s capital city eased more than expected in May.

The Federal Reserve (Fed), on the other hand, is expected to keep interest rates higher for longer to combat stick inflation. In fact, the markets have started pricing in the possibility of another 25 bps lift-off at the June FOMC policy meeting and the bets were lifted by the recent comments by a slew of Fed officials. Adding to this, Thursday’s upbeat US macro data could allow the US central bank to stick to its hawkish stance.

This has been pushing the US Treasury bond yields higher recently, widening the US-Japan rate differential and supporting prospects for the emergence of some dip-buying around the USD/JPY pair. The USD bulls, however, seem reluctant to place aggressive bets and await the release of the Core PCE Price Index – the Fed’s preferred inflation gauge – later during the early North American session for a fresh impetus.

Technical levels to watch

 

Read the full article here

Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
Previous ArticleECB’s Vujčić: Inflation momentum is still persistent
Next Article European stocks rise on optimism over US debt ceiling talks

Related Posts

EUR/USD remains capped under the 1.1000 mark, Eurozone HICP, US PCE eyed

November 30, 2023

Bank of England Governor Bailey says the UK outlook is worst I’ve seen

November 30, 2023

Gold Price Forecast: XAU/USD extends its rally near $2,050 ahead of Chinese PMI data

November 30, 2023

Japan October Industrial production (preliminary) +1.0% m/m (expected 0.8%)

November 30, 2023

AUD/USD holds above 0.6600, eyes on Chinese PMI, Core US PCE data

November 29, 2023

2024: "The Year of Bonds" (thats the view according to Goldman Sachs)

November 29, 2023
Add A Comment

Leave A Reply Cancel Reply

Top News

JPMorgan CEO Jamie Dimon to business leaders: ‘Help Nikki Haley’

November 30, 2023

Marvel movies will be Bob Iger’s Disney priority after the cinematic universe suffered recent box office fails

November 30, 2023

EUR/USD remains capped under the 1.1000 mark, Eurozone HICP, US PCE eyed

November 30, 2023

Subscribe to Updates

Get the latest finance, business and many more news directly to your inbox.

Advertisement
Demo

The Marcet is one of the best Finance, Business, and Crypto news websites, we provide the latest news from the most trusted sources. Follow us to get the latest news now.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest YouTube
Top Insights

Video: Elon Musk Apologizes for Endorsing Antisemitic Conspiracy Theory

November 30, 2023

JPMorgan CEO Jamie Dimon to business leaders: ‘Help Nikki Haley’

November 30, 2023

Marvel movies will be Bob Iger’s Disney priority after the cinematic universe suffered recent box office fails

November 30, 2023
Get Informed

Subscribe to Updates

Get the latest finance, business and many more news directly to your inbox.

© 2023 The Marcet. All rights reserved.
  • Privacy Policy
  • Terms of use
  • Press Release
  • Advertise
  • Contact

Type above and press Enter to search. Press Esc to cancel.