- Broad USD weakness and Japan politics send USD/JPY below 107.00
- US industrial production and housing data to offer some respite to the bulls?
The USD/JPY pair keeps the offered tone intact in the European session, now meandering near three-day troughs of 106.88 amid a broadly weaker US dollar and falling approval rating of the Japanese PM Abe.
The greenback stalled its Asian recovery attempts across its main competitors, as Trump’s latest tweet on the USD continues to dent the sentiment around the USD bulls. Trump in his tweet, noted: "Russia and China are playing the Currency Devaluation game as the U.S. keeps raising interest rates. Not acceptable."
Further, uncertainty around the Japanese political climate as the current PM Abe’s approval ratings keep falling, which fuels risk-off sentiment and underpins the demand the safe-haven Yen.
Attention now turns towards a flurry of US macro news slated for release later today, with the US housing and industrial production data closely eyed. Also, speeches by the FOMC members Williams and Quarles will remain in focus for fresh dollar trades.
USD/JPY levels to watch
The AceTrader Team explains, “the lack of a rebound from said intra-day 106.97 trough suggests the market is keen to test dlr's downside after price hit a 6-week peak of 107.78 on Friday and the path of least resistance in the meantime is down, so selling dlr on recovery is the way to go. Offers are tipped at 107.10/20 n more above with some stops above 107.40.
Some bids are noted at 106.90/80 with some stops below there, however, more sell stops are touted below 106.60. “
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