USD/JPY refreshes multi-week support near 110.70 ahead of Fed

• USD/JPY extends the previous session’s decline in the initial Asian trading hours.
• Lower US Treasury yields undermine the demand for the US dollar
• US Dollar Index slips below 92.50, Fed meet eye.

USD/JPY edges lower with the previous day’s losses in the Asian session on Wednesday. The movement in the US dollar keeps USD/JPY on the lower side.

At the time of writing, USD/JPY is trading at 109.74, down 0.01% for the day.

The US 10-year benchmark yields anchored lower near 1.23% ahead of the Fed’s interest rate decision, despite the upbeat economic data. US Consumer Confidence, Housing Prices, and orders for long-lasting products came on the higher side.

Investors remained cautious about the Fed’s interest rate decisions and its forward guidance on the inflation and growth outlook.

On the other hand, the Japanese yen held the ground on its safe haven appeal as investor’s risk appetite dampens on rising coronavirus infections.

The Japanese yen gained against the greenback after the Bank of Japan (BOJ) Governor Haruhiko Kuroda said that the BOJ’s 2% inflation target pulled Japan’s economy out of deflation.

As for now, investors wait for the BOJ Summary of Opinions, Leading Economic Index,  and the Fed Interests Rate Decision to gauge the market sentiment.

USD/JPY additional levels