Japanese Yen weakens as 10-year bond yield hits 3% for first time since 1996
The USD/JPY pair edges higher to around 159.85 during the early European trading hours on Tuesday.
The Japanese Yen experienced a weakening trend as its 10-year bond yield hit 3% for the first time since 1996, signaling a potential shift in the country's monetary policy. This development occurred after US Treasury Secretary Scott Bessent expressed his desire for the Bank of Japan to raise interest rates more aggressively. Despite Bessent's comments, the Yen remained relatively weak against the US Dollar.
Japanese Finance Minister Satsuki Katayama confirmed that she had discussed the situation with Bessent and agreed on the importance of orderly Yen movement for global market stability. The US and Japan emphasized that continued cooperation would contribute to achieving this mutual objective. Market analysts noted that the Bank of Japan's September 18 decision would be crucial in determining the future movement of the Yen.
The technical analysis indicated that the USD/JPY pair was trading under the 100-day moving average and the upper Bollinger band, suggesting a capped tone and underlying demand. However, support and resistance levels were identified at the 20-day Bollinger middle band and the 100-day moving average, respectively.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
