FX Action: USD-JPY has steadied after a run of four down days
FX Action: USD-JPY has steadied after a run of four down days, with the pair holding a narrow range in the low 111.0s after logging a six-week low yesterday, during the New York PM session, at 111.04. Yen crosses have seen a similar price action, while the dollar logged fresh lows versus the euro, sterling and Australian dollar, among other currencies, in the early part of the Asia-Pacific session, after Fed's Dudley argued that the case for gradualist approach to tightening monetary policy remains strong. The hawkish-leaning ECB minutes, yesterday, and the BoJ's QE tapering announcement earlier in the week, have been factors generating a softer dollar theme this week. via EUR-USD buying and USD-JPY selling, respectively. Analysts anticipate more of the same for now.traded firmer today after a three consecutive day run lower, which printed a seven-week low at 111.27 yesterday. The pair has since lifted to the upper 111.0s. China officially rebutted yesterday's Bloomberg article that cited unnamed sources alleging that it was pondering a reduction in purchases of U.S. Treasuries, which helped the dollar find its feet today. China's State Administration of Foreign Exchange sadi that the report was based on "false" information. The remark saw the yield on the 10-year T-note tick lower while giving the dollar a lift. The BoJ's QE tapering announcement of earlier this week is still being digested, though some market narratives downplay the move as being little more than a baby step, with the central bank likely to remain committed to its YCC (yield curve control) policy in the face of the chronic undershooting of the inflation target. A former key support zone in USD-JPY at 112.00-05, now marks resistance.