- USD/JPY remains on track to finish second straight week higher.
- US Dollar Index turns flat on the day near 97.20.
- Activity in Japan's service sector recovered sharply in June.
The USD/JPY pair is moving sideways in an extremely tight 15-pip range on Friday amid thin trading conditions and a lack of significant fundamental drivers. As of writing, the pair was virtually unchanged on the day at 107.50. On a weekly basis, the pair is up 30 pips.
Japan's service sector shows signs of life
Earlier in the day, the data from Japan showed that the Jibun Bank Services PMI rose from 26.5 in May to 45 in June. Commenting on the data, "panel comments suggest that service sector demand conditions remain very fragile and although the spread of the virus has stabilised in Japan, customer numbers were reportedly still low in June," said Joe Hayes, Economist at the IHS Markit. "Until demand rises persistently at a strong rate, we can expect a sluggish recovery."
Boosted by this data, the Nikkei 225 Index rose 0.66% on Friday. However, the market sentiment turned sour during the European session and major European equity indexes remain on track to close the day in the negative territory.
Meanwhile, the US Dollar Index is staying flat on the day near 97.20 on Friday, making it difficult for the pair to determine a short-term direction.
On Thursday, the US Bureau of Labor Statistics' monthly report revealed that Nonfarm Payrolls in the US increased by 4.8 million in June. However, the rising number of confirmed coronavirus cases in the US caused investors to remain cautious and helped the greenback stay strong against its peers.
Technical levels to watch for
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD failed just ahead of the 200-day SMA
Finally, AUD/USD managed to break above the 0.6500 barrier on Wednesday, extending the weekly recovery, although its advance faltered just ahead of the 0.6530 region, where the key 200-day SMA sits.
EUR/USD met some decent resistance above 1.0700
EUR/USD remained unable to gather extra upside traction and surpass the 1.0700 hurdle in a convincing fashion on Wednesday, instead giving away part of the weekly gains against the backdrop of a decent bounce in the Dollar.
Gold keeps consolidating ahead of US first-tier figures
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Bitcoin price could be primed for correction as bearish activity grows near $66K area
Bitcoin (BTC) price managed to maintain a northbound trajectory after the April 20 halving, despite bold assertions by analysts that the event would be a “sell the news” situation. However, after four days of strength, the tables could be turning as a dark cloud now hovers above BTC price.
Bank of Japan's predicament: The BOJ is trapped
In this special edition of TradeGATEHub Live Trading, we're joined by guest speaker Tavi @TaviCosta, who shares his insights on the Bank of Japan's current predicament, stating, 'The BOJ is Trapped.'