USD/JPY lingers at three-week lows after Bessent chimes in on BOJ coverage

While the dollar remains in a more vulnerable spot this week, the move today seems to be triggered by a break in short-term technicals. And that is also helped out by US Treasury secretary Bessent’s comments, in trying to spark a stronger yen currency here. It is no secret that the US hasn’t been happy with with Japan on currency matters, as it has been a sticking point in the past in trying to address the trade deficit.

So far though, Tokyo has maintained that the exchange rate has not been part of trade conversations. But judging by Bessent’s comments today, it looks like it will start to be as both sides engage in further negotiations. As a reminder to that, what Japan has with the US now is a framework agreement that is temporarily put in place as both sides engage in more discussions.

USD/JPY is pressured lower on the day as the drop also comes alongside a break of near-term support around 146.61-70 below:

Sellers are firmly in near-term control with little standing in the way of a push towards the late July low around 145.85 next. The next key support level to be mindful of in the event of a further downside leg will be the 100-day moving average at 145.50 currently. That before the 145.00 level comes into contention on the charts.

Head on over to investingLive (formerly ForexLive) to get in on the know!