USD/JPY recovers from Wednesday’s losses hover around 113.60

• A positive market sentiment hurt safe-haven currencies on Thursday, but the greenback versus the Japanese Yen appreciated.
• The US 10-year Treasury yield dipped three basis points, finished at 1.516%.
• Fed’s Bullard and Bostic, among others, coincide that inflationary pressures are stickier than expected.

The USD/JPY begins on the right foot in the Asian session, advances 0.01% is trading at 113.70 during the day at the time of writing. 

On Thursday, financial markets witnessed appetite towards riskier assets, depicted by US equity indexes, finishing in the green, following European stocks footprints. In the Forex Market, the greenback weakened in tandem with safe-haven currencies, while the US 10-year T-bond yield fell three basis points, to end at 1.516%. Despite all those factors, the greenback gained traction against the Japanese Yen, reversing the Wednesday price action when the USD/JPY pair threatened to break under the 113.00 figure.

Also, some Fed speakers crossed the wires. The St. Louis Fed President James Bullard said that there is no strong case that inflationary pressures will dissipate over the next six months.  In the same tone, the Atlanta Fed President Raphael Bostic said that inflation appears to last longer attributed to supply chains and labor disruptions.

Furthermore, the US Initial Jobless Claims decreased to 293K better than the 319K foreseen by analysts, increasing the chances of a Fed’s bond taper announcement in the November meeting. Additionally, the US Producer Price Index (PPI) rose by 8.6%, lower than the 8.7% estimated, while the PPI excluding food and energy, the so-called Core, increased by 6.8%, lower than the 7.1%.

On Friday, the Japanese economic docket will feature the Tertiary Industry Index for August on a monthly basis is expected at 0%.

Meanwhile, in the US, Retail Sales and the University of Michigan Consumer Sentiment Index will be unveiled on Friday. Investors expect a decrease of 0.2% in Retail Sales for September, whereas the UoM Consumer Sentiment Index for October estimates around 73.1 better than the September 72.8.

USD/JPY: KEY ADDITIONAL LEVELS TO WATCH