USD/JPY: Bears track downbeat US Treasury yields to target 108 amid off in Japan

USD/JPY takes provides round 108.45, down 0.12% intraday, for the duration of Thursday’s Asian session. In doing so, the quote drops for the 2nd consecutive day even as markets in Japan as off.

The cause may want to be traced to downbeat US Treasury yields that drag the US greenback index (DXY) to refresh a two-month low. Bond yields reversed the preceding day from the absolute best considering that mid-April after the US Federal Reserve (Fed) repeated cautious optimism whilst matching the vast market expectation of no alternate to its cutting-edge financial policy. Also weighing on the T-Bond yields should be Fed Chair Jerome Powell’s press convention that sought greater time earlier than discussing the tapering.

Elsewhere, the coronavirus woes in Japan and India elevate doubt over the international restoration hopes. Also difficult the market optimists are the uneven vaccinations and doubts over the key jabs, like the AstraZeneca.

Amid these plays, S&P five hundred Futures beneficial properties 0.35% whilst the DXY drops 0.10% through the press time.

Moving on, a lack of essential data/events at domestic highlights US President Joe Biden’s first tackle to the ‘joint Congress’. Although the early tips endorse in addition stimulus and hold markets hopeful, hardships for tax-hike plans and expectations of a difficult stand in geopolitical troubles may also let the USD/JPY depressed.

It’s really worth citing that the preliminary readings of the US first quarter (Q1) GDP will be the key to watch for the duration of today’s North American session.

Technical analysis
The USD/JPY pair’s U-turn from 21-day SMA, round 109.00 through the press time, directs the marketers towards an ascending assist line from January 06 close to 107.70.

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