USD/JPY is down 0.3% to 147.75 currently as lower Treasury yields is weighing on the pair. 10-year yields in the US are down to 4.10% and that is putting a slight drag on the dollar. The fall is still largely contained by the 200-day moving average though, which remains the key level to watch ahead of the Fed.
US Treasury 10-year yields (%) daily chart
As for USD/JPY itself, the 100-day moving average at 147.51 is still the key support level in play currently. Elsewhere, USD/CHF is down 0.4% to 0.8610 while AUD/USD is up 0.4% to 0.6600 on the day.
The laggard though is the euro currency as it is down 0.3% against the dollar at 1.0825. ECB policymakers reaffirmed rate cut expectations today but they seem to be steering markets to a June decision. However, traders are not listening as they continue to pile on hopes for a rate cut in April.
A 25 bps cut in April is now more than fully priced in with 143 bps worth of rate cuts priced for the year. That’s a slight step up from earlier today, with the former having odds of around ~98% previously.