USDJPY traces firmer yields to print mild gains around 139.50, focus on G20, Japan GDP

• USDJPY snaps two-day downtrend at the lowest levels since late August.
• Yields prints corrective pullback from monthly low but talks of Fed pivot test bond sellers.
• BOJ’s defense of easy-money policy, hopes of economic rebound highlight this week’s Japan Q3 GDP.
• Updates from G20 can direct immediate moves, US Retail Sales is also important for near-term directions.

USDJPY licks its wounds at a 2.5-month low as it consolidates recent losses with 0.70% intraday gains around 139.50 as markets in Tokyo open for Monday.

In doing so, the yen pair justifies the recent cautious mood as bond traders return from a long weekend. Also likely to have challenged the USDJPY bears is the anxiety ahead of a meeting between US President Joe Biden and China’s Prime Minister Xi Jinping on the sidelined of the Group of 20 Nations (G20) gathering in Bali.