After the US Dollar Index (DXY) showed terrible signs, the USD/JPY pair fell to 146.00 in Asia. Since Wednesday, when it hit a low of 146.22, the asset has gone down for two days. The major is getting close to Monday’s low, which was 145.77.

Dollar bulls are selling because they think the market will do well. Risk-sensitive currencies have benefited from rising risk appetite. At 109.56, the index has hit a new monthly low. Investors are nervous because critical economic data is coming out soon.

The yields on US government bonds have gone down because more people worldwide are buying them. The yield on a 10-year Treasury is 4%.

In the third quarter, calculations show that the US GDP grew by 2.4%. Even though the Federal Reserve (Fed) has very aggressive monetary policies, growth is expected.

US Durable Goods Orders will also be necessary. The economy should grow by 0.6% instead of 0.2%. Core inflation, which doesn’t include oil and food, is rising. Even so, US households might buy many durable goods.

Investors in Tokyo are waiting to see what the BOJ decides about interest rates on Friday. Governor Haruhiko Kuroda of the Bank of Japan (BOJ) will keep monetary policy very loose to help the economy grow. Also, the Japanese government worries that inflation could fall below 2%, so a leniency policy is best.

Conclusion

At the time of press, the USD/JPY was trading at 146.08, which was 0.18 percent less than before. The US Q3 GDP numbers will release on Thursday, and the BOJ’s monetary policy will announce on Friday.