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USD/JPY edges higher despite US-Japan trade deal, yen struggles
USD/JPY has ticked up 0.2% to 151.45 in early European trading, as the yen failed to capitalize on the newly announced US-Japan trade agreement. The comprehensive trade pact, aimed at reducing tariffs and enhancing bilateral economic cooperation, initially sparked hopes for yen strength but market reaction remained muted. Strong US Treasury auction results, with the 20-year bond yielding 4.935% and attracting robust demand (bid-to-cover ratio of 2.79x versus 2.62x average), supported dollar strength. The auction showed exceptional domestic participation at 21.86%, well above the 18.0% six-month average, indicating continued confidence in US debt. Technical indicators suggest USD/JPY faces immediate resistance at 151.80, with support established at 151.00. Traders are monitoring whether the trade deal's long-term benefits might eventually boost yen sentiment, though near-term dollar strength from solid Treasury demand appears dominant.
USDJPY
Sentiment:
Positive
Source: Finnhub