fundamental News - USD/JPY
The appreciative move in the US dollar Index (DXY), keeps the USD/JPY
afloat in the early Asian session. The pair trades on a subdued note
around the 108.869 levels, where it wavers now and manages to hold onto
the positive territory.
Investors turn their attention toward the release of US JOLTs Job
Openings data and Fed’s official speeches to gauge market sentiment.
The move is primarily sponsored by the rebound in US Treasury
yields after Fed officials showed faith in the ongoing US economic
recovery. Officials commented that one-month employment data could be
considered as a temporary analysis for reopening the
economy in sections, as some volatility is imminent. These comments had
a positive impact on US Treasury yields with price trading at 1.60%,
around 0,11% gains on the day.
US President Joe Biden delivered remarks on the economy on Monday
and would meet with Republican and Democratic leaders on Wednesday for
further economic discussion, including his $4 trillion legislative
proposal.
As a cascading effect, the greenback bounced from the multi-day lows at 90.04 and made highs of 90.33.
On the other hand, the internal factors owing to the recent state
of emergency pose a threat to the economic recovery in the coming few
quarters, as predicted by Reuters polls. Household Spending in Japan
increased 6.20% in March. The risk to Japan’s
economy remain skewed to the downside as per the BOJ Summary of
Opinions (April Monetary Policy) released on Tuesday.
Expectation today: neutral