USD/JPY reverses as US stocks extend losses

By FXStreet FXStreet (Córdoba) – USD/JPY peaked after the release of Janet Yellen speech but then reversed, trimming gains.

Tests November highs and back to 123.00

Janet Yellen gave more signals that a rate hike is coming and boosted the US dollar in the market. USD/JPY peaked at 123.66, hitting a 2-week high. Afterwards Greenback lost momentum and pulled back.

The yen strengthened as US yields move off session highs and amid a decline in US stocks. The Dow Jones is losing 0.85% and the Nasdaq declines 0.60%. The US 10-yr yield is at 2.17% after reaching 2.20% earlier.

Currently USD/JPY trades at 123.10/15, just 30 pips above yesterday’s’ s closing price. Price is back at the level it had before the release of the ADP employment report.

USD/JPY capped again below 123.70

For the third time in less than 30 days, the area around 123.70 capped the upside. Today USD/JPY turned to the downside after approaching the mentioned area. During November it tested several times 132.65/70 but greenback failed to break higher. The mentioned area has become a key resistance going into the NFP report on Friday.

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Source:: FX Street