- USD/JPY extends gains as risk-on remains at full steam.
- Easing Fed rate cut expectations lifts Treasury yields across the curve.
- All eyes on US data and FOMC minutes for fresh direction.
The selling interest around the anti-risk Yen remains unabated so far this Wednesday, keeping the USD/JPY pair in highs around the 106.55 region, as the bulls await the Federal; Reserve’s (Fed) July meeting’s minutes for the next push higher.
FOMC minutes to arrive less dovish?
The risk-on sentiment remains the underlying theme heading into the Fed event, as Treasury yields continue to push northwards alongside the US equity futures.
The rally in the US rates can be attributed to markets’ expectations that the Fed minutes will be read less dovish, as a strong and healthy US economy could see Fed adopting a slower pace of rate cuts than previously expected.
However, the further upside lacks momentum, as the greenback has softened its position against the six major currencies amid reduced demand for the safe-haven USD. The USD index is seen moving away from three-week peaks to now trade flat near 98.20 region.
Further, strong option expiries aligned near 106.70/75 continue to guard the upside, below which the pair remains trapped for the fourth straight session today. The immediate focus now remains on the US Existing Homes Sales data, as the US-China trade fears take a backseat ahead of the Fed minutes due later today.
USD/JPY Technical levels to consider
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 remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.