- USD/JPY continues to push higher after closing above 110.00 on Monday.
- US Dollar Index fluctuates around 92.00 on Tuesday.
- Eyes on FOMC Chairman Jerome Powell's testimony at 1800 GMT.
After staying relatively quiet in a tight range above 100.00 during the first half of the day on Tuesday, the USD/JPY pair gained traction and reached a fresh daily high of 110.75. As of writing, the pair was up 0.4% on a daily basis at 110.73.
DXY clings to daily gains near 92.00
Although the greenback struggled to find demand on Monday, the late rebound witnessed in the US Treasury bond yield provided a boost to USD/JPY and helped it stage a sharp U-turn during the American session.
On Tuesday, the renewed USD strength is allowing USD/JPY to preserve its bullish momentum. The US Dollar Index is currently rising 0.18% on the day at 92.02. Later in the session, FOMC Chairman Jerome Powell will testify before the House Select Subcommittee on the Coronavirus Crisis at 1800 GMT.
The data from the US revealed on Tuesday that Existing Home Sales declined by 0.9% in May and the Richmond Fed Manufacturing Index improved modestly to 22 in June from 18 in May.
In the early trading hours of the Asian session on Wednesday, the Bank of Japan will release the June Monetary Policy Meeting Minutes. Jibun Bank Manufacturing PMI data will be featured in the Japanese economic docket as well.
Assessing the BoJ's policy outlook, "we keep our view for the BoJ to do more and enhance its monetary policy easing further and we are also cognizant that market expectations are now tilted to the BoJ having reached the limits of its monetary policy and will remain in a holding pattern on policy until at least April 2023 when Governor Kuroda is scheduled to leave the BOJ," said Calvin Liew, Senior Economist at UOB Group.
Technical levels to watch for
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.