BUZZ-COMMENT-Preemptive Fed little help in dollar's struggle vs yen
July 28 (Reuters) - USD/JPY's unimpressive rebound from 4-1/2-month lows after the Fed burnished its market back-stopping bona fides amid uncertainty about further fiscal relief and coronavirus outbreaks suggests the risk remains to the downside for this risk indicator.
The Fed announcement to extend emergency lending facilities from September 30 to year-end helped firm up softening stocks, Treasury yields and trim haven yen gains and may diminish the importance of Wednesday's FOMC statement and press conference.
But it came amid a drop in U.S. consumer confidence and worries that the pandemic remains on the prowl and a threat to economic recoveries until treatments and vaccines are available.
USD/JPY, at the intersection of the recent exodus out of the dollar and into the haven yen, probed key supports by 105, but has so far held off on a bigger break toward the next major technical targets in the 104.10-17 range .
But a close below 105, particularly with 10-year Treasury-JGB yield spreads probing this year's 30-year lows, would reemphasize downside USD/JPY risks.
For more click on FXBUZ
(Randolph Donney is a Reuters market analyst. The views expressed are his own.)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.