USD/JPY pinned at the lows for the day ahead of European trading

<p>The pair is down 1.2% on the day near the 146.00 mark currently, with the low earlier touching 145.90. It has been more or less one-way traffic since liquidity picked up in Asia, after the opening gap lower in the pair.</p><p>The surge higher in the Japanese yen comes after BOJ governor Ueda's remarks on a "quiet exit" from their current monetary policy settings. It's a contrast to what they have been previously talking but is perhaps an attempt to try and prevent a further fall in the currency, which was quite assured given the stance before the weekend and with a stronger US dollar as well.</p><p>That being said, I still hold my reservations about an actual or imminent shift in stance by the BOJ as noted <a href="https://www.forexlive.com/news/japanese-yen-surge-on-ueda-remarks-the-big-story-to-start-the-new-week-20230911/" target="_blank" rel="follow">here</a>. But we'll see in time.</p><p>For now, USD/JPY is on the retreat and the near-term chart above shows that sellers are back in control. The break back below the 200-hour moving average (blue line) now sees the near-term bias turn more bearish but there is a key hurdle in the 145.00 mark next. Sellers will have to break below that in order to really get rid of buyers and their resolve.</p><p>But at least for the moment, the dollar is cooling off amid the unwinding in USD/JPY longs and also a stronger yuan today is helping the overall mood in broader markets. But with 10-year Treasury yields inching back towards 4.30%, it's too early to say that this is where we get a turnaround in dollar sentiment after the last two weeks.</p>

This article was written by Justin Low at www.forexlive.com.