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The recent cautious comments from Japanese central bank officials regarding further tightening brought a lot of losses to the Japanese yen against other major currencies and gave up a lot of its sharp gains.
USD/JPY Technical Analysis and Expectations Today:
USD/JPY has rebounded to the 149.12 resistance level, nearing the critical 150.00 mark. A break above 150 could confirm a bullish shift in the overall trend contrast, according to the performance on the daily chart, returning to the area of the support level of 145.00 will be important for the strength of the bears' control over the trend. The dollar against the Japanese yen will remain subject to signals from global central bank officials and the extent of investors' appetite for risk or not.
According to stock trading platforms, US stock markets on Wall Street are falling as investors reconsider bets on interest rate cuts. According to trading, US stocks fell on Monday afternoon, erasing the gains they made from last week's rally, as investors recalibrated their expectations for a US interest rate cut by the Federal Reserve after a strong jobs report. According to the performance, the Standard & Poor's 500 and Nasdaq fell by 1%, while the Dow Jones fell by more than 400 points.
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On another note, the yield on the benchmark US 10-year Treasury note rose above 4% for the first time since August amid doubts about the US Federal Reserve's next move. Traders have now revised their expectations, reducing the chances of a US interest rate cut by 0.50% in November, with an 84% chance of a smaller cut of 0.25%. This week, key inflation data will be closely watched as earnings season gets underway, featuring reports from major banks such as JPMorgan, Wells Fargo and Bank of New York Mellon. Sector-wise, utilities, consumer discretionary and financial services were the hardest hit, while energy was higher. Among tech giants, Apple (-1.9%), Microsoft (-1.5%), Alphabet (-2.3%), Amazon (-3.2%) and Meta (-1.9%) were down, while Nvidia (+3%) advanced.
Earlier, Asian and Pacific stock markets rose on Monday, with Japan's Nikkei 225 index leading the way, rising by about 2% as investors anticipated decisions from major central banks across the region. The strong performance of financial companies, cyclical consumer stocks, and a significant boost from gaming giant Nintendo drove the index's gains. Meanwhile, the US jobs report added to global optimism, pushing the US dollar higher and easing concerns about further interest rate cuts by the Federal Reserve.
Meanwhile, Nintendo shares surge on Saudi investment interest. The Nikkei 225 index rose 2.18%, with Nintendo shares jumping 3.8% after reports that the Saudi Public Investment Fund was considering increasing its stake in the company. Furthermore, this news comes as part of the fund's broader interest in Japanese gaming companies. Financial companies such as Mizuho Financial Group and Mitsubishi UFJ Financial Group also contributed to the Nikkei's gains. Meanwhile, the Japanese yen rose 0.16% to trade at 148.46 after hitting a more than two-month low earlier in the session. Amidst this performance, new Japanese Prime Minister Shigeru Ishiba stated that the environment is not yet ready for additional interest rate hikes by the Bank of Japan, adding more pressure on the yen.
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