Dollar/yen dips after Powell's Fed remarks, then rebounds on stronger JOLTS data
【7/2Market Overview
During Tokyo time, USD/JPY rose on expectations of domestic demand for dollar purchases and the Nikkei stock average recovering to 40,000, breaking above the previous high of161.72yen to161.74yen, then hovering around the 161.60 zone with little movement. In European trading, USD/JPY was around161.60yen with little change.In New Yorktime, as 10-year U.S. Treasury yields fell, USD/JPY came under selling pressure. When Fed Chair Powell said that the data was "suggesting inflation is moving back on a disinflationary path" and that "an unexpectedly soft labor market could trigger action," the market reacted dovishly, pushing USD/JPY down to161.26yen, and subsequently,5month U.S. job openings data (JOLTS) showed job openings at814.0ten-thousand, above the forecast of791.0ten-thousand, leading USD/JPY to161.62yen for a rebound.