• Reviving safe-haven appeal does little to assist build on overnight goodish up-move.
• Resurgent USD demand/positive US bond yields helped limit any immediate downside.
• Investors’ focus remains glued to the latest FOMC monetary policy meeting minutes.
The USD/JPY pair lacked any firm directional bias and seesawed between tepid gains/minor losses, within a narrow trading range through the mid-European session.
The pair struggled to build on overnight goodish rebound from near one-month lows, with a combination of diverging forces failing to provide any fresh impetus and leading to a subdued/range-bound price action on Wednesday.
A slight deterioration in investors' risk-appetite, as depicted by a mildly negative tone around European equity markets, was seen underpinning the Japanese Yen's safe-haven status and was seen as one of the key factors capping gains.
The pair, however, has managed to hold comfortably above the 112.00 handle and was supported by some renewed US Dollar buying interest. This coupled with a modest uptick in the US Treasury bond yields further collaborated towards limiting any immediate sharp downslide.
Moreover, investors also seemed reluctant to place any aggressive bets ahead of today's key event risk - the latest FOMC meeting minutes, which might provide clues over the central bank's rate hike path beyond 2018 and eventually provide a fresh directional impetus.
In the meantime, the US economic docket, featuring the release of housing market data - building permits and housing starts, will be looked upon to upon to grab some short-term trading opportunities during the early North-American session.
Technical levels to watch
The 112.40-50 region might continue to act as an immediate resistance, above which the pair is likely to aim towards reclaiming the 113.00 handle with some intermediate resistance near the 112.70-75 area.
On the flip side, any meaningful retracement is likely to find support near the 112.00 handle, which if broken is likely to accelerate the slide towards 111.75 level en-route 100-day SMA support near the 111.40-35 region.
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 rises to two-day high ahead of Aussie CPI
The Aussie Dollar recorded back-to-back positive days against the US Dollar and climbed more than 0.59% on Tuesday, as the US April S&P PMIs were weaker than expected. That spurred speculations that the Federal Reserve could put rate cuts back on the table. The AUD/USD trades at 0.6488 as Wednesday’s Asian session begins.
EUR/USD holds above 1.0700 on weaker US Dollar, upbeat Eurozone PMI
EUR/USD holds above the 1.0700 psychological barrier during the early Asian session on Wednesday. The weaker-than-expected US PMI data for April drags the Greenback lower and creates a tailwind for the pair.
Gold price cautious despite weaker US Dollar and falling US yields
Gold retreats modestly after failing to sustain gains despite fall in US Treasury yields, weaker US Dollar. XAU/USD struggles to capitalize following release of weaker-than-expected S&P Global PMIs, fueling speculation about potential Fed rate cuts.
Ethereum ETF issuers not giving up fight, expert says as Grayscale files S3 prospectus
Ethereum exchange-traded funds theme gained steam after the landmark approval of multiple BTC ETFs in January. However, the campaign for approval of this investment alternative continues, with evidence of ongoing back and forth between prospective issuers and the US SEC.
Australia CPI Preview: Inflation set to remain above target as hopes of early interest-rate cuts fade
An Australian inflation update takes the spotlight this week ahead of critical United States macroeconomic data. The Australian Bureau of Statistics will release two different inflation gauges on Wednesday.