USD/JPY bounces off the lows again

As you can see, the extreme volatility seen across the US (and global) stock markets last week continued to spill over into the FX markets. At one point on Friday the USD/JPY fell to a new low on the year, at 144.56 (as noted here at the time). That was all about a further flight to the Yen has a haven. However, what came later surely caught many flat-footed. That is because the dollar rallied into the US close, despite US stocks really tanking into the weekend. The catalyst for that rebound was all due to the comments from the Fed boss, Jerome Powell. He repeated; that the Fed is in no rush to change policy, as it waits to see the inflationary impact of the US trade tariffs. That was a direct response to calls earlier in the day from the US President, demanding that he cut interest rates immediately. Well, the USD/JPY jumped back above 147 leading into the close, reaching 147.43 and later ending the session at 146.93. Overnight the USD/JPY dropped back again as risk aversion and the slide in the Nikkei 225 sent the dollar down to 144.82, but that low held above the lows seen on Friday. It has since bounced again and lifted back above 146 just now. The much earlier Asian high was set at 147.12. The USD/JPY is lifting as the European stock markets continue to try and stabilise at lower levels and the EUR/USD and GBP/USD just now step back once more. The USD/JPY is right now at 146.12