USD/JPY nudges back above 132.00 on higher bond yields
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As bond yields trace higher, we are seeing the yen fall back after a good run in the past week or so. The banking turmoil looks to be easing and that is helping to see broader market sentiment recover some poise since US trading yesterday. USD/JPY hit a low of 130.55 in European trading the day before but is pushing back above 132.00 currently:
As evident by the chart, the movement in the pair is largely driven by action in the bond market.
As such, the Fed policy decision tomorrow will be a key driver of trading sentiment for what comes next in USD/JPY.
For now, the near-term bias is still favouring sellers with price holding below the 100-hour moving average (red line). Buyers will have to push above that to invalidate the recent downside momentum.