USD/JPY pressured after US ISM PMI data

Despite rising US Treasury bond yields, the USD/JPY pair was unable to gain momentum. According to December’s 2022 dot-plots, the Fed policymakers who made the Wednesday poking are still anticipating rates at roughly 5.25 percent.

Although input costs have increased, manufacturing activity in the US is still at a low level, which has traders concerned about more Fed tightening.

The USD/JPY pair is still under pressure after the US ISM Manufacturing PMI for February fell short of predictions, despite recent US economic data to the contrary. Nonetheless, a number of subcomponents show that prices are rising once more. The USD/JPY currency pair is now trading at 136.08.

Once the ISM report was released, stock prices are fluctuating. The rating was 47.7, below February’s forecast of 48, indicating that the Fed’s aggressiveness is still having an effect on manufacturing. A closer look at the report reveals that the Prices Index increased to 51.3, above the 45.1 predictions, causing the US Dollar Index (DXY) to soar to 136.31 and the USD/JPY to rise to 51.3.