- Global growth concerns continue to underpin JPY’s safe-haven demand.
- Improving risk sentiment seemed to help limit the downside for now.
- A subdued USD price action does little to provide any meaningful impetus.
The USD/JPY pair extended its sideways consolidative price action at the start of a new trading week and remained well within a narrow trading band below mid-106.00s.
Diverging forces fail to provide any impetus
The pair failed to capitalize on last week's goodish recovery attempted from multi-month lows and continues to be weighed down by mounting concerns about slowing global economic growth, which tends to underpin the Japanese Yen's relative safe-haven demand against its American counterpart.
Adding to this, persistent uncertainty over a possible resolution to the prolonged US-China trade disputes, especially after the US President Donald Trump said that he was not ready yet to make a trade deal with China, further collaborated towards keeping a lid on any meaningful up-move for the major.
However, the negative factors - to a larger extent - were negated by growing expectations that policymakers would unleash new stimulus, which coupled with a bullish trading sentiment around global equity markets helped limit any immediate downside, at least for the time being.
Meanwhile, a subdued US Dollar price action did little to influence the price action as market participants now look forward to latest FOMC meeting minutes for a fresh insight over the central bank's near-term monetary policy outlook, which might help determine the pair's next leg of a directional move.
Apart from this, the incoming trade-related headlines might continue to play a key role in influencing the pair's momentum ahead of the next big event risk - the Fed Chair Jerome Powell's scheduled speech at the key Jackson Hole Symposium on Friday.
Technical levels to watch
|Today last price||106.38|
|Today Daily Change||0.01|
|Today Daily Change %||0.01|
|Today daily open||106.37|
|Previous Daily High||106.5|
|Previous Daily Low||106.03|
|Previous Weekly High||106.98|
|Previous Weekly Low||105.05|
|Previous Monthly High||109.01|
|Previous Monthly Low||107.21|
|Daily Fibonacci 38.2%||106.32|
|Daily Fibonacci 61.8%||106.21|
|Daily Pivot Point S1||106.1|
|Daily Pivot Point S2||105.83|
|Daily Pivot Point S3||105.63|
|Daily Pivot Point R1||106.57|
|Daily Pivot Point R2||106.77|
|Daily Pivot Point R3||107.04|
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