USD/JPY extends losses below 106.50 despite broadly firmer USD
- Treasury yields, US equity futures resume Monday’s risk-on rally.
- Renewed uptick in US Dollar Index to save the day for the USD/JPY bulls?
- Focus on Fedspeak, risk sentiment for fresh trading impulse.
The USD/JPY pair came under fresh selling pressure and hit fresh session lows near 106.44 in early trades, even though S&P 500 futures turned positive and Treasury yields recovered across the curve.
Risk sentiment remains fragile ahead of Fed
The Japanese Yen continues to attract the safe-haven flows, as the risk sentiment remains fragile, despite the renewed trade optimism, as markets remain cautious ahead of the July Fed meeting’s minutes and the Jackson Hole Symposium.
Over the last hour, the major extended its Asian decline from multi-day tops of 106.69 and looks south, as the bulls fail to benefit from the renewed uptick in the US dollar across its main competitors. The USD index regains poise and prints fresh three-week tops at 98.40.
The spot is mainly driven by the risk sentiment, as looming US-China trade uncertainty dominate while broad US dollar price-action amid increased Fed rate cut expectations also continues to influence the pair.
Technical levels to consider
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
