USDJPY BUY
Speculations that authorities would intervene and respond to the recent sharp decline in the Japanese yen, along with fading hopes for diplomacy in Ukraine, acted as a headwind for the USD/JPY pair. Bearish traders further took cues from the ongoing decline in the US Treasury bond yields, though resurgent US dollar demand helped limit the downside for spot prices, at least for the time being.
Following the recent fall to a nearly two-week low, the USD made a solid comeback amid acceptance that the Fed would hike interest rates by 50 bps at the next two meetings to combat high inflation. The market bets were reaffirmed by Thursday's release of the US Core PCE Price Index, which accelerated to a 5.4% YoY rate in February from the 5.2% reported in the previous month.
Following the recent fall to a nearly two-week low, the USD made a solid comeback amid acceptance that the Fed would hike interest rates by 50 bps at the next two meetings to combat high inflation. The market bets were reaffirmed by Thursday's release of the US Core PCE Price Index, which accelerated to a 5.4% YoY rate in February from the 5.2% reported in the previous month.
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