The greenback is sitting lower ahead of European trading as traders keep the post-FOMC reaction from yesterday going. It is a case of sell the dollar, buy everything else or a reversal of the theme that we have been accustomed to for most of 2022. USD/JPY is one of the more notable movers on the day, down 0.9% to 141.60 levels currently:
USD/JPY vs US Treasury 10-year yields (%) daily chart
The pair is following a drop alongside Treasury yields and is now looking to take out its 200-day moving average (blue line). In doing so, that will put sellers back in control with a first drop below both key daily moving averages since April. This latest rumoured headline involving the BOJ is also helping to stoke the flames and keep the Japanese yen in a better spot ahead of the central bank meeting next week.
Given the potential break below the 200-day moving average, that will leave little in the way of a push towards 140.00 next for USD/JPY.
Elsewhere, EUR/USD has also broken out of range and is pushing back towards 1.0900 but that is one of the less painful ones for the dollar. AUD/USD is up 0.9% to 0.6715 – its highest since the end of July – and may look to target the June and July highs next just under the 0.6900 mark. The aussie is also buoyed by a stronger jobs report earlier here.