Published: 2024-02-02T05:21:24.000Z
USD/JPY flows: Treading lower
FX Analyst
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U.S. Treasury Yields recovered some grounds and JGB yields slip
USD/JPY has quietly tread lower despite choppy USD trading. It does not seem to be derived from the change in risk sentiment as market participants has been favoring the USD when seeking haven for the past year given the higher yield. The key driver remains in yield differential which is expected to further narrow. Yet, it will not be a smooth path and we heard from Powell earlier in the week as he push back against early cut speculation and all eyes remain at the spring wage negotiation in Japan.
USD/JPY is trading 0.04% higher at 146.47.