Title: USD/JPY manages to hold above 142.00 mark, focus remains on US inflation data

9

/13/2022 7:53:44 AM GMT

By: AnalysisWatch

The USD/JPY pair came under fresh selling pressure on Tuesday and dropped to a fresh daily low during the early European session.

The spot price, however, managed to find some support near the 142.00 mark and quickly bounced back towards the 142.25-142.30 region in the last hour.

The US dollar remained pressured near the monthly low touched on Monday and turned out to be the key factor exerting some downward pressure on the USD/JPY pair.

A survey released by the Federal Reserve Bank of New York showed that consumer expectations for US inflation over the coming years declined sharply to the lowest level since October 2021. In addition, a slight decline in US Treasury bond yields weighed on the greenback.

Moreover, speculation that the authorities will soon step in to arrest the Japanese yen's free fall also contributed to the offered tone surrounding the USD/JPY pair. Nonetheless, the general positive tone in equity markets weakened the safe-haven JPY. This, along with the vast difference in monetary policy stances adopted by the Bank of Japan and the Federal Reserve, helped limit the major's downside, at least for the time being.