USD/JPY daily chart
USD/JPY is now up 0.2% on the day to 147.56 as buyers are leaning on the 100-day moving average (red line) at 147.05 to put a defence so far today. The greenback in general is also showing some added signs of resilience, as the euro now is pipping the dollar in the race to interest rate cuts following softer euro area inflation this week.
The drop in EUR/USD to 1.0920, down 0.5%, is also helping to alleviate some of the pressure off the dollar currently.
The headline on the absence of Tokyo intervention here is a bit-part catalyst for USD/JPY, as the pair has already been recovering in the last hour from 147.20 to 147.50 levels now. I would argue that the technical consideration is the more important factor at play now for the pair.
At the same time, do be mindful of bond market developments. While 10-year Treasury yields are up 2 bps to 4.293% at the moment, it continues to sit below the break of its 100-day moving average from earlier this week. And that technical development is a potentially significant driver of momentum for the dollar once we move past month-end trading.