Forex News

USD/JPY erases early drop to turn flat on the day

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In the transition from Asia to Europe, the pair fell to a low of 145.10 before steadying a little. And as the dollar is sitting firmer across the board, we are seeing buyers come back into play for USD/JPY in a push back up to 146.47, near its highest levels on the day.

There’s not much news driving the push besides some added headlines on Japan’s stimulus package, said to be ¥71.6 trillion, according to the final draft of the economic package as cited by Reuters. But that isn’t a market mover by any means. Instead, this is largely flow-driven as we see buyers show some appetite after the continued fall in the past few days following the intervention play.

The fact that Treasury yields are also higher today (10-year yields up 5 bps to 4.065%) is also helping the mood, with the dollar finding a footing at the moment.