USD/JPY awaits fresh catalysts, likely stemming from Brexit developments


  • USD/JPY holding in a narrow range of between a low of 108.64 and 108.76 so far.
  • Ears to the ground for Brexit headlines, stealing the show. 

USD/JPY stuck to a narrow 108.60-108.85 range overnight and the pair has shown little sign of budging in Asia today so far. There have been some less than optimistic trade headlines overnight and while Brexit appears to have made some progress, there is still a fine line to cross between all systems go and Brexit another hic-up.

USD/JPY is currently trading at 108.69 having travelled between a tight range of between a low of 108.64 and 108.76 so far on a relatively quiet session. Markets were indeed dominated by Brexit headlines, snippets here and there of trade-related headlines and US data were mixed. A drop in retail sales raised concerns about the momentum in consumption, although the NAHB housing index rebounded to its highest level in 21 months. 

Brexit steals the show

Fed funds futures showed expectations over a 25bp insurance cut from the FOMC later this month intensifying, yet stocks ended a touch lowe due to the Retail Sales and a murmur of Chinese retaliation for the US's position on Hong Kong which poured cold water on the positive trade deal sentiment.

As for Brexit, analysts at Westpac explained that "although no Brexit breakthrough has been confirmed, the impression is that on the eve of the EU Summit there could still be the draft of a deal. This may be too late for full signoff at the EU summit, but it may allow for EU-27 to return before the end of the month to sign off on a fully detailed withdrawal agreement."

Meanwhile, the US 2-year treasury yields ranged sideways between 1.57% and 1.61% while the 10-year yield moved between 1.72% and 1.76%. "Markets are pricing 20bp of easing at the 30 October meeting and a terminal rate of 1.21% (vs 1.88% currently)," the analysts Westpac noted.

USD/JPY levels

USD/JPY

Overview
Today last price 108.7
Today Daily Change -0.05
Today Daily Change % -0.05
Today daily open 108.75
 
Trends
Daily SMA20 107.74
Daily SMA50 107.1
Daily SMA100 107.57
Daily SMA200 109.07
 
Levels
Previous Daily High 108.88
Previous Daily Low 108.56
Previous Weekly High 108.63
Previous Weekly Low 106.65
Previous Monthly High 108.48
Previous Monthly Low 105.74
Daily Fibonacci 38.2% 108.68
Daily Fibonacci 61.8% 108.76
Daily Pivot Point S1 108.59
Daily Pivot Point S2 108.42
Daily Pivot Point S3 108.27
Daily Pivot Point R1 108.9
Daily Pivot Point R2 109.04
Daily Pivot Point R3 109.21

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

AUD/USD consolidates, bulls eye push towards 0.7400

AUD/USD is currently trading just below Tuesday highs at 0.7369, as bulls eye a push towards the 0.7400 level. A significant improvement in global risk appetite gave AUD a boost on Tuesday and sets the currency up well for the coming Wednesday Asia session.

AUD/USD News

Gold consolidates above $1,800, hangs near four-month lows

Gold holds just above the $1,800 threshold while taking rounds close to four-month lows. The hopes of the US stimulus and recovery from the coronavirus (COVID-19) keep the gold bears hopeful. DJI30, S&P 500 closed at the record top, DXY eased.

Gold news

NZD/USD wavers around 2.5-year high below 0.7000 even as RBNZ’s Orr backs low interest rates

NZD/USD keeps the choppy trading above 0.6965, easing five pips off-late. RBNZ Governor Adrian Orr says low interest rates ensure NZD’s competitiveness. A light calendar in Asia highlights risk news for fresh impulse.

NZD/USD News

On-chain metrics spell trouble for Bitcoin, Ethereum, and XRP despite on-going bull rally

The top three cryptocurrencies are seeing massive gains over the past few days. BTC price is close to its all-time high, currently trading at $19,300. XRP had a massive 242% colossal rally in the past week. ETH also closely following BTC's step.

Read more

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex MAJORS

Cryptocurrencies

Signatures