USD/JPY: Limited chances to extend the advance
|USD/JPY is nearing the upper end of its latest range as the pair managed to gain some pips overnight, hitting a daily high of 105.61 and trading now a few pips below the level, but a breakout is not yet clear. Meanwhile, financial markets keep focusing on a US fiscal stimulus package, FXStreet’s Chief Analyst Valeria Bednarik briefs.
Key quotes
“Investors are cautiously optimistic about o US stimulus aid package, as talks continued, although Democrats 48-hour deadline ends today. Following Wall Street’s slump, Asian and European stocks are trying to post gains, with major indexes trading mixed around their opening levels. Still, the pair is up on higher government debt yields as the yield on the benchmark 10-year Treasury note is up to 0.77%.”
“USD/JPY has limited chances of extending its advance in the near-term. The 4-hour chart shows that the pair is developing above a modestly bullish 20 SMA, although the price is stuck around directionless and converging 100 and 200 SMAs.The Momentum indicator advances within positive levels, while the RSI consolidates around 58, both rather reflecting the intraday advance than suggesting further gains ahead.”
“A decision on the US fiscal stimulus package could be the catalyst the market needs to break the ongoing USD/JPY range.”
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