The USD/JPY pair maintained its bearish bias through early NA session but has managed to hold above session lows touched during the early European session.
A goodish rebound in European equity market pointed to improving risk appetite and was seen denting the Japanese Yen's safe-haven appeal. This coupled with a sharp US Dollar recovery, primarily led by some selling pressure around the EUR/USD major following ECB headlines further assisted the pair to recover back above the 112.00 handle.
• US Dollar holding on to 96.00 and above
However, retracing US Treasury bond yields, especially shorter end of the yield curve, failed to provide any additional boost to the greenback and held the pair near mid-point of the daily trading range, around 112.10 region.
Next on tap would be the release of pending home sales data from the US, while comments coming from Central Bankers panel discussion at the European Central Bank Forum, including BOJ Governor Haruhiko Kuroda would now turn out to be the key determinant of the pair’s movement through NY trading session on Wednesday.
• ECB Forum: Draghi, Poloz, Kuroda and Carney – Live speeches
Technical outlook
Valeria Bednarik, Chief Analyst at FXStreet writes, “the 4 hours chart shows that the price holds above a Fibonacci support, around 112.00, while technical indicators are retreating modestly within positive territory, but still well above their mid-lines. The 100 SMA in the mentioned chart gains bullish strength below the current level, but the 200 SMA maintains its bearish slope, both too far away to be relevant today.”
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
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.