USD/JPY again faces rejection at 110.00, drops to 109.70 after Trump speech
|- USD/JPY is feeling the pull of gravity, having faced rejection at 110.00 for the third straight day.
- Trump's comments have had little impact on the S&P 500 futures and other related markets.
The USD/JPY pair is currently trading at the session low of 109.70, having faced rejection at the psychological hurdle of 10.00 for the third day straight.
President Trump, in his State of the Union Address, cited war, politics and ridiculous partisan investigations as obstacles to the US economic growth and criticized China for stealing intellectual property rights. He also offered his take on Border Wall, health insurers and drug prices.
Trump's comments hit the wires a few minutes before press time, but have not had any impact on the equities, treasuries or even the Mexican peso. As of writing, the S&P 500 futures are trading flat-to-positive. The 10-year treasury yield is flatlined at 2.7 percent and the USD/MXN is up just 0.10 percent on the day.
So, the drop in USD/JPY (uptick in JPY) seen in the last few minutes may have got more to do with the repeated bull failure at the psychological hurdle of 110.00 rather than Trump's comments.
Looking ahead, the dollar could pick up a strong bid if the US fourth-quarter unit labor costs blow past expectations, forcing the market to reassess the Fed's recent dovish turn.
USD/JPY Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.