USDJPY tracks yields to retreat from yearly top as Japan intervention, BoJ loom

Sentiment remains dicey on early Wednesday as traders consolidate the previous days losses amid mixed catalysts. Also adding filter to the trading moves could be fears of market intervention by Japan and China, as well as cautious mood ahead of the top-tier data in the Eurozone, and US, not to forget the Bank of Canada (BoC) monetary policy meeting decision.

With these catalysts, the US Dollar bulls take a breather at the highest level in nearly six months while the US Treasury bond yields retreat from a fortnight high. However, the prices of gold and crude oil fail to cheer the US Dollar‘s pullback amid economic fears surrounding China and hopes of witnessing less damage to the US economy due to the higher rates, which in turn defends the Fed’s rate bias suggesting “higher for longer”.

It should be noted that Australias upbeat Q2 GDP and hopes of more China stimulus for real estate firms allow AUDUSD and NZDUSD to print mild gains at the yearly low.

On the other hand, the retreat in yields joined fears of hawkish BoJ and Japan meddling to allow the USDJPY to become the biggest gainer from the USDs retreat.

It should be noted, however, that the US and European stock futures edge lower and join the Asia-Pacific equities to portray the markets sour sentiment despite the latest corrective moves.

Elsewhere, BTCUSD and ETHUSD stay pressured despite industry data suggesting the accumulation of long positions at lower levels and likely speedy approvals to the crypto ETFs.

Following are the latest moves of the key assets:

• Brent oil retreats from the yearly high to print mild losses around $90.00 by the press time.

• Gold price remains pressured for the fifth consecutive day to around $1,926 at the latest.

• USD Index retreats from the highest level since March 15 to poke 104.70 level as we write.

• Wall Street closed with minor losses and so did the Asia-Pacific stocks while equities in Europe and the UK remain depressed by the press time.

• BTCUSD stays pressured at around $25,700 while ETHUSD drops to $1,630 at the latest.