USDJPY is pressing to fresh session lows, with sellers leaning on the pair and probing below the 100-hour moving average at 159.347.
USDJPY is pressing to fresh session lows, with sellers leaning on the pair and probing below the 100-hour moving average at 159.347. The move comes as US yields edge lower, with the 10-year down around 2 basis points to near 4.303%.
While that dip offers some support for the downside in USDJPY, yields remain above the 4.30% level, which continues to act as a floor and limits the extent of the dollar’s decline. In other words, the rate backdrop is helping sellers at the margin, but it is not yet a full green light for a deeper move lower. At the same time, the broader market tone is being shaped by shifting headlines around the Iran/US/Israel conflict and ongoing efforts toward a ceasefire or negotiated resolution.
There is still an underlying sense of cautious optimism, but the latest reports have introduced some uncertainty. Iranian sources are indicating that Abbas Araghchi will not meet with US officials in Pakistan, while other reports suggest that US envoys, including Steve Witkoff and Jared Kushner, are expected to travel to Pakistan to meet with Iran’s foreign minister to discuss a potential path toward ending the conflict. The conflicting narratives are creating a degree of hesitation, keeping volatility elevated and conviction somewhat muted.