- USD/JPY is looking optimistic ahead of the FOMC meeting.
- US Treasury yields underpin demand for the greenback.
- Investors shy away from the safe-haven yen on improved risk sentiments.
The USD/JPY pair extends its previous two session gains and continues to march higher in the European session on April 28. The pair peaked at 109.08, the level last seen on April 14.
At the time of writing, USD/JPY is trading at 109.05, up 0.34% on the day.
The US dollar index (DXY), which tracks the movement of the greenback against the majors, is gaining traction. After making a low of 90.89, the index touched highs of 91.11. The move is sponsored by momentum in the US 10-year yield, which rose to 1.65% from 1.62% with gains of more than 1%. This, in turn, aggravates demand for the dollar as an attractive asset among investors and hence is exerting pressure on the Japanese yen.
Upbeat US economic data continues to strengthen investors risk appetite, thus helping to gain a stronghold for the greenback. US CB Consumer Confidence data rose to 121.7 in April from 109 in March, beating market expectations that stood at 113.
On the other hand, Japanese policymakers kept short-term key rates unchanged at -0.1%, as widely expected on Tuesday, and cut its consumer inflation forecast to 0.1% from earlier predictions of 0.5%. Retail Sales increased by 5.2% on a yearly basis in March. However, the concerns of lower inflation expectations, and thus the lower interest rates, overshadowed the good sales number. As said, the Japanese government is ready to impose strict measures and limit many businesses from operating to curb the rising coronavirus infections in the continent. Investors are now reluctant to place safe bets on the yen.
As for now, the focus shifts to the FOMC meeting and Fed Press Conference later in the day. Investors eagerly await the events to unfold to gauge market sentiments for some meaningful trading opportunities.
USD/JPY technical levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD holds positive ground above 1.0750 ahead of Eurozone PMI, PPI data
EUR/USD trades in positive territory for the fourth consecutive day near 1.0765 during the early Monday. The softer US Dollar provides some support to the major pair. Traders await the HCOB Purchasing Managers’ Index (PMI) data from Germany and the Eurozone, along with the Eurozone PPI.
GBP/USD rises to near 1.2550 due to dovish sentiment surrounding Fed
GBP/USD continues its winning streak for the fourth consecutive day, trading around 1.2550 during the Asian trading hours on Monday. The appreciation of the pair could be attributed to the recalibrated expectations for the Fed's interest rate cuts in 2024 following the release of lower-than-expected US jobs data.
Gold price rebounds on downbeat NFP data, softer US Dollar
Gold price snaps the two-day losing streak during the Asian session on Monday. The weaker-than-expected US employment reports have boosted the odds of a September rate cut from the US Federal Reserve. This, in turn, has dragged the US Dollar lower and lifted the USD-denominated gold.
Bitcoin Cash could become a Cardano partnerchain as 66% of 11.3K voters say “Aye”
Bitcoin Cash is the current mania in the Cardano ecosystem following a proposal by the network’s executive inviting the public to vote on X, about a possible integration.
Week ahead: BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.