USDJPY retreats below 141.00 amid continuous USD selling.
In the face of persistent USD selling, USDJPY finds it difficult to hold onto its intraday rebound gains. The dollar suffers from bets on less aggressive Fed rate rises and falling US bond rates. The tendency to take risks might weaken the safe-haven JPY and boost the pair. Additionally, a more dovish BoJ would discourage bears from making new bets on USDJPY.
On Friday, the USDJPY picks up some steam and somewhat rebounds from the previous day’s milder US CPI-driven decline to the 140.20 level or a two-month low. However, the intraday rise starts to stall at the mid-142.00s. During the first half of the European trading day, the pair gives up a significant portion of its intraday gains and drops below the 141.00 level.
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