USD/JPY remains on track to close modestly lower around 104.30
|- USD/JPY is posting small daily losses on Thursday.
- US Dollar Index looks to close a little above 92.00.
- US stock and bond markets are closed due to the Thanksgiving Day holiday.
After closing virtually unchanged at 104.45 on Wednesday, the USD/JPY pair edged slightly lower and seems to have steadied around 104.30 on Thursday.
Markets remain subdued
Despite the modest recovery witnessed in the US Dollar Index (DXY), USD/JPY struggled to gain traction as the cautious market mood, as reflected by the uninspiring performance of major European equity indexes, helped the JPY stay strong against its peers.
In the absence of significant macroeconomic data releases and fundamental drivers, the DXY, which closed the last two days in the negative territory, pushed higher on Thursday and was last seen gaining 0.12% at 92.10. However, this recovery seems to be a technical correction of the latest decline and is unlikely to gather momentum.
Meanwhile, stock and bond markets in the US are closed due to the Thanksgiving Day holiday and USD/JPY is likely to extend its sideways grind in the remainder of the day.
In the early trading hours of the Asian session, Tokyo Consumer Price Index (CPI) and Foreign Bond Investment data from Japan will be looked upon for fresh impetus.
Technical levels to watch for
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