The USDJPY pair prints a mild recovery from a two-week low around 145.70-80 during early Wednesday morning in Asia. In doing so, the Yen pair snaps a three-day downtrend amid the market’s cautious mood.
The latest updates from the US mid-term elections might raise fears of higher rates. The worsening coronavirus conditions in China also contribute to the latest risk-aversion, as well as to the USDJPY prices at a distance.
Japan reported a notable monthly Current Account surplus for September. However, it failed to ignore the heaviest decline in the surprise when considered for the first half (H1) of the current fiscal year (FY) since 2008.
Additionally, talks of Bank of Japan’s (BOJ) meddling and the recently softer US data joined mixed concerns at the Fed to escalate the US Treasury yields and the USDJPY prices of late.
Amid these plays, the US 10-year Treasury yields regain upside momentum past 4.14% while the two-year counterpart also prints mild gains near the 4.66% level. It should be noted that the US stock future printed mild losses while the Asia-Pacific equities closed in the red despite Wall Street’s three-day uptrend.
Moving on, political and covid updates may entertain USDJPY traders ahead of Thursday’s US Consumer Price Index (CPI) for October.