Another hurdle for the greenback is the growing market fear of a pause on rate hike cycle by the . In this context, the December Fed meeting will be the key event for the pair. Despite the lingering doubts, the will likely hike for the fourth time this year. But much will depend on the Powell’s tone, as a cautious or even somehow “dovish” rhetoric could dump the dollar across the board.
USDJPY struggles to stay above the 113.00 hurdle this week. The dollar needs some impetus, including higher Treasury yields, to make a clear break above this level. Otherwise, the risk of a slide to 112.30 will grow. The pair will turn on a break below the 112.00 support. As the risk aversion still prevails, the path of least resistance remains to the downside.