USD/JPY flows: Following the overnight slump

USD continue to weakens on Thursday Asia session after the FOMC meeting show a lower dotplot in 2024. U.S. Treasury Yields tread lower across the curve while 10yr JGB yields are trying top close the opening gap. The signal of potentially early rate cut from the fund will accelerate the pace of yield differentials narrowing between the USD and JPY, thus carry trades will loss its attractiveness and led to rewind in previous long USD/JPY positions. Moreover, the Japan's ruling party introduces income tax breaks to alleviate the impact of price hikes and would likely support private investment growth in 2024. 

USD/JPY once trade to a session low of 140.94 before bouncing to 141.70 to trade 0.83% lower for the day.