Japanese Yen Forecast: USD/JPY at Risk of Pullback on Mounting US Recession Fears

Japanese Yen Forecast: USD/JPY at Risk of Pullback on Mounting US Recession Fears

From dailyfx.com

Last Friday, I discussed the tight positive correlation between the USD/JPY and the U.S. 10-year yield and argued that the U.S. dollar could continue to soften if Treasury rates extended their correction. This forecast has played out well so far, with the pair falling from 128.20 to 127.15 in the last three days, despite today’s modest advance, a retreat that has coincided with the 10-year yield falling from 2.85% to 2.72% at the time of writing. The relevant question now, however, is whether the recent price dynamics will be sustained in the near term. Although the divergence in monetary policy between the Federal ... (full story)

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