• USD/JPY consolidates gains on Thursday in the initial trading session.
  • Lower US Treasury yields undermine the demand for the US dollar.
  • The yen remains unchanged after the BOJ summary of opinions suggests a longer accommodative monetary policy.

USD/JPY remains muted in the Asian session on Thursday. The movement in the US dollar keeps USD/JPY on the lower side.

At the time of writing, USD/JPY is trading at 109.92, up 0.01% for the day.

The US 10-year benchmark yields anchored lower near 1.23% even after the Fed hinted that progress has been made toward conditions for tapering bond buys as the economy has improved. However, there were no timelines details were mentioned.

The US dollar moved in tandem with the bonds yields and remained lower below the 92.50 mark.

On the other hand, the Japanese yen held the ground on its safe haven appeal as investor’s risk appetite dampens on rising coronavirus infections.

The Japanese yen remained on the backfoot after the International Monetary Fund (IMF) cut 2021’s GDP growth forecast for Japan to 2.8% from 3.3%.

Meanwhile, the Bank of Japan (BOJ) released the Summary of Opinions, which highlighted the risk of COVID-19 on the economy. The downward pressure on consumption is likely to accelerate due to the reinstatement of the state of emergency.

As for now, investors wait for the US Core Personal Consumption Expenditure (PCE) data, Gross Domestic Product (GDP), and Weekly Initial Jobless Claims to gauge the market sentiment.

USD/JPY additional levels

 

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