- The Japanese Yen struggles to preserve its intraday gains and drops to a fresh low against the USD.
- Reduced bets for an eventual hawkish BoJ pivot undermine the JPY and lend support to USD/JPY.
- A fresh leg up in the US bond yields boosts the USD and further acts as a tailwind for the major.
The Japanese Yen (JPY) surrenders its intraday gains against the US Dollar (USD) and lifts the USD/JPY pair to a fresh daily peak, around the 144.30 area during the first half of the European session on Tuesday. Government stimulus measures in the wake of a devastating New Year’s Day earthquake in Japan might have already delayed the Bank of Japan’s (BoJ) plan to pivot away from its ultra-dovish stance. Adding to this, falling rates of inflation in Tokyo – Japan’s capital city – reaffirmed bets that the BoJ will…
