USD/JPY inter-market: Yen holding upside tone on lower stocks despite stimulus reports

The yen gained momentum in the market during the last hours and printed fresh highs against the US dollar and also versus other currencies. Reports suggesting that Japan would double the planned spending stimulus package kept the yen with a strong tone in the market.

USD/JPY  was already trading in negative territory, after being unable to hold above 106.00. Recently it printed a fresh daily low at 105.73. European stocks finished marginally higher while in Wall Street, the Dow Jones is losing a hundred points or 0.56%, while the Nasdaq declines 0.15%.

Today the pair dropped despite the movement in bond yields. The US 10-year was modestly higher around 1.573%  while the Japan 10-year dropped marginally further into negative territory to -0.238% the lowest since July 15.

Volatility in the USD/JPY pair could start rising ahead of Wednesday’s FOMC meeting and Friday’s Bank of Japan decision.