Currencies
Yen Selling Trend Emerges During US Trading With All Eyes on Fed
- Dollar-yen’s recent highs struck during North American hours
- Japan’s currency is hovering near its 200-day moving average
Yen selling against the dollar tends to intensify when North America-based traders come online, an indication about the source of the biggest short-selling trades for Japan’s currency, a Bloomberg News analysis shows.
Tuesday is shaping up to be another day of dollar strength as US Treasuries continue to be sold, putting fresh pressure on the yen. Several Federal Reserve officials have also prescribed caution on the rate-cutting cycle, creating uncertainty about the pace at which the yield gap between Japan and the US will narrow. That opens the door for the yen to drop further, with its 200-day moving average, currently at 151.36, being the next target for investors.