USD/JPY finds buyers again near 112.10, eyes on US data

Dhwani Mehta FXStreet

Amid a pick-up in buying interest seen in Treasury yields and positive Asian equities, the USD/JPY pair continues to find support on 112 handle.

USD/JPY re-attempts gains above 10-DMA at 112.28

The major is seen wavering back and forth in a 15-pips narrowing, closely tracking the USD price-action amid a lack of fresh fundamental catalysts, while investors gear up for a fresh round of US economic releases due later on Wednesday for fresh impetus on the buck.

Meanwhile, positive tone seen on the Asian equities combined with higher commodities’ prices, continue to keep a lid on further upside in the safe-haven Yen against its American counterpart.

Also, hawkish comments from the Fed member Harker as well as Trump’s remarks on the tax reforms stalled the greenback’s corrective slide, in turn aiding a minor recovery in USD/JPY pair from 112.13 lows. At the time of writing, the spot is seen trading at 112.25, up +0.03% on the day.

Looking ahead, the range-trade is expected to continue in USD/JPY, so long as it holds above 112 handle, as pre-caution trading ahead of Sunday’s Japanese election is likely to drive the sentiment around the Yen markets.

USD/JPY Technical View

Jim Langlands at FX Charts lays out the preferred strategy: “US$Jpy has had a tight 40 point range and further consolidation in the 112.00/113.00 may be in store. The hourly indicators look a little heavy but the 4 hour charts look positive and if the session high at 112.47 can be taken out, then 112.75 would be the first real hurdle ahead of 113.00 and 113.43 (6 Oct high). On the downside, back below 112.00, good support now seen at 111.60/70, and buying dips is preferred today. Further out, the dailies look less positive, so further range trade between 111.60/113.00 may be in store for the next few days.”

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.

GBP/USD surges to multi-day peaks past 1.3250

GBP/USD leaves behind Friday’s small pullback and advances past 1.3250 level, or five-day highs, on Monday. Cable’s upside follows extra losses in the Greenback, while traders continue to assess the geopolitical front and upcoming key events.

EUR/USD picks up extra pace north of 1.1400

EUR/USD extends its recovery past 1.1400 the figure as the NA session draws to a close on Monday. Indeed, the pair advances for the third straight day amid the persistent offered bias in the US Dollar. Meanwhile, market participants keep gearing up for the ECB Forum in Sintra and the release of critical US labour market data.

Gold bears flirt with $4,000 as Iran tensions and Fed hike bets support USD

Gold remains under some selling pressure for the second straight day on Tuesday, with bears awaiting a sustained break below $4,000 before positioning for deeper losses. Renewed US-Iran hostilities over the weekend cast doubts over the sustainability of the peace deal. This, along with elevated expectations for Fed rate hikes, offers some support to the US Dollar and keeps the bullion within striking distance of the YTD low, touched last week.

Bitcoin stalls at $60K as buyer conviction fades, Strategy authorizes BTC sales

Bitcoin is trading around the $60,000 level on Monday after a sharp decline last week. With the top crypto struggling to recover, analysts suggest the market remains firmly in defensive territory as investors await stronger signs of demand.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.