- USD/JPY has found a temporary cushion around 138.50 as the US Dollar recovers from morning losses.
- The 10-year US Treasury yields have dropped to 3.65% as Fed Powell is expected to shift to a lower rate hike.
- Tokyo’s inflation has outpaced forecasts led by months of yen weakness and elevated energy costs.
The USD/JPY pair is building a cushion around the immediate support of 138.50 in the early European session. Signs of recovery in the USD Index (DXY) have also propelled the USD/JPY pair marginally. The US Dollar has recovered its entire morning losses and is expected to frighten the solid risk-on profile ahead. However, the bias is still in favor of risk-sensitive assets.
S&P500 futures are behaving as inactive as investors are returning after a holiday session due to Thanksgiving Day. The returns generated by 10-year US Treasury bonds have dropped further to 3.65% as odds of continuation of 75 basis…
