• Bullish momentum remains unaffected by subdued USD demand.
• Risk-off mood/falling US bond yields doing little to stall the up-move.
• Investors now look forward to BOJ decision for fresh impetus.
The USD/JPY pair continued gaining some positive traction through the mid-European session and is now placed at fresh one-week tops, around the 113.15-20 region.
The pair has, so far, managed to hold in positive territory for the second straight session and the bullish momentum, beyond the 113.00 handle, remained untouched by subdued US Dollar demand, which failed to benefit from progress on a major US tax reform bill.
Even a mildly negative tone around the US Treasury bond yields and weaker trading sentiment around European equity markets, which tends to underpin the Japanese Yen's safe-haven demand, did little to stall the pair's upward trajectory.
It would now be interesting to see if bulls are able to maintain their dominant position or some profit-taking kicks in later during the day as investors start repositionig themselves for the upcoming BOJ monetary policy decision on Thursday.
In the meantime, today's release of existing home sales data from the US would be looked upon to grab some short-term trading opportunities during the early NA session.
Technical levels to watch
A follow-through buying interest has the potential to continue lifting the pair towards its next hurdle near the 113.50-55 region, above which the pair seems more likely to aim towards reclaiming the 114.00 handle.
On the flip side, 112.90-85 area now seems to protect the immediate downside, which if broken could accelerate the fall back towards 112.35 horizontal level en-route the 112.00 handle.
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.