USD/JPY: dollar pushing a little higher, the pair takes on fresh highs

Markets are awaiting the US New homes Sales data after the FOMC minutes revealed that members are concerned for housing. However, the main focus stayed with the emerging markets and trade as downside risks. The members also expect GDP growth to slow in second half of the year but remain above potential.

Further key notes for the minutes:

• Officials note rates moving closer to estimates of neutral.
• Further gradual hikes to help keep econ. 
• Some see fiscal as upside risk, few see as the future downside.
• Trade poses important source of uncertainty.
• Discussed implication of yield-curve flattening.
• The weighed timing of when to stop calling rates accommodative.
• Many officials see inflation stable near 2% m-term.
• Officials discussed bank counter-cyclical capital buffers. 

Also, renewed political uncertainty is regarded as further headwinds for the dollar. Wall Street, although marking the longest bull run in history, was a little off today.

Wall Street ends choppy session mixed

The DXY also fell below the 95 handle to print a low of 94.9340 from the high 95.3770. as for US yields, the 10-year treasury note yield climbed from 2.8190 to 2.8320 and fell back to 2.82 before closing at 2.8260.  

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that the pair once again was unable to surpass the 100 DMA but continues to pressure the indicator. Shorter term, and according to the 4 hours chart, the pair presents a neutral-to-bearish stance, as technical indicators continue lacking directional strength around their midlines, as the price develops below its 100 and 200 SMA.