USD/JPY remains confined in the 105.00-105.80 range
|The USD/JPY pair trades lower in range this Monday, as a better market mood plays against the greenback, but also means absent demand for the Japanese currency. Dollar/yen is neutral in the near-term and needs to leave the 105.00/80 range to show signs of life, FXStreet’s Chief Analyst Valeria Bednarik reports.
Key quotes
“Speculative interest continues to focus on a US stimulus package and other pandemic developments. US President Donald Trump has expressed its willingness for a larger stimulus package, although he still has to convince hard-line Republicans. Meanwhile, House Speaker Nancy Pelosi set a 48-hour deadline for US stimulus talks in a last-ditch effort to clinch a deal before the election.”
“Japan published the September Merchandise Trade Balance Total, which posted a surplus ¥675 B, below the expected ¥989.8 B but above the previous ¥248.6 B. Imports decreased by 17.2%, while exports were down by 4.9%. Also, China published the Q3 Gross Domestic Product. The report showed a 4.9% growth in the three months to September, below the 5.2% expected but better than the previous 3.2% Industrial Production and Retail Sales in the country improved by more than anticipated. The US won’t publish relevant data, but Fed’s Chair Jerome Powell is due to offer a speech.”
“USD/JPY is neutral in the short-term, as it has been hovering around 105.40 for over two weeks. In the 4-hour chart, the pair is above the 20 SMA but below the larger ones, which converge around 105.55. The range is defined by 105.00 to the downside and 105.80 to the upside. The pair needs to clear one of those two levels to return to life.”
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.