USD/JPY inter-markets: awaits Trump to resume prior appreciating move?

Haresh Menghani FXStreet

The USD/JPY pair failed to build on previous session's tepid recovery bounce and remained under some renewed selling pressure on Tuesday as market participants look forwards to the US President Donald Trump's speech.

The pair struggled to hold overnight gains led by renewed expectation for a Fed rate-hike action at its upcoming meeting in March after hawkish comments from the Dallas Fed President Robert Kaplan.

The pair’s latest leg of weakness has been primarily led by a fresh wave of fall in the US treasury bond yields. This coupled with a slide in the JGB yields, and a minor up-tick in the Volatility Index (VIX), pointed towards cautious investors' sentiment, which supports the Japanese Yen's safe-haven appeal, and collaborated to the pair's offered tone on Tuesday.

The selling pressure seems to have abated near 112.25 level as investors preferred to wait on the sideline until details about Trump's proposed pro-growth economic policies emerge from his first address to a joint session of Congress, later during the day.

Any additional details pertaining to the fiscal stimulus measured and tax plans would result to sharp rise in the US Treasury bond yields and eventually making it easier for the major to resume with its prior appreciating move.

Also watch: Live Stream – President Trump interviewed by Fox News

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 112.18

33% Bullish
50% Bearish
17% Sideways

Bias Bearish

1 Month

Avg Forecast 114.33

71% Bullish
21% Bearish
7% Sideways

Bias Bullish

1 Quarter

Avg Forecast 115.27

61% Bullish
11% Bearish
28% Sideways

Bias Bullish

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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