- USD/JPY remains on the road to recovery.
- Mixed clues from China keep the risk-tone directionless and fragile.
- Fed isn’t expected to alter monetary policy but the Chair’s press conference will be the key.
USD/JPY keeps the range between 109.00 and 109.30, currently declining to 109.12, as Wednesday’s Tokyo session starts. In doing so, the quote remains mildly positive amid mixed headlines from China. Though, traders are also gearing up for today’s FOMC and might have waited for the event release before taking big trading decisions.
BOJ’s Summary of Opinions reiterates the bearish bias…
In its Summary of Opinions concerning the latest January month’s meeting, the Bank of Japan said it must maintain easy policy bias as must be vigilant to risk Japan's economy may lose momentum for hitting price goal. The statement also said to coordinate with govt's fiscal policy, structural measures.
Coronavirus keep’s the driver’s seat…
While China’s optimism to be able to beat the lethal virus, as well as calls of its peak in the next 10 days, triggered the recent risk recovery, increased rate of the death toll and newly confirmed cases keep the risk-tone under pressure. Also challenging the risk-on could be the US updates to shut flights off China.
With this, the US 10-year treasury yields remain mostly directionless around 1.65%, after bouncing off the early October lows on Tuesday, whereas S&P 500 Futures lose 0.1% to 3,275 by the press time.
Earlier, the US data concerning Consumer Confidence and Durable Goods Orders flashed mixed releases whereas Richmond Fed Manufacturing rose to the late-2018 top.
Even so, US President Donald Trump didn’t refrain from pushing the Fed towards more rate cuts. Though, the US Federal Reserve is likely turning deaf ears to the republican leader’s repeated push in today’s monetary policy meeting. However, calls concerning the economic performance and risks from China could be the keys to watch during the Fed Chair Jerome Powell’s press conference.
100 and 200-day SMAs, around 108.70 and 108.45 respectively, could keep the pair’s near-term declines limited whereas 21-day SMA near 109.30 and multiple upside barriers near 109.75/80 challenge buyers.
Additional important levels
|Today last price||109.12|
|Today Daily Change||0.00|
|Today Daily Change %||0.00|
|Today daily open||109.12|
|Previous Daily High||109.2|
|Previous Daily Low||108.76|
|Previous Weekly High||110.22|
|Previous Weekly Low||109.17|
|Previous Monthly High||109.8|
|Previous Monthly Low||108.43|
|Daily Fibonacci 38.2%||109.03|
|Daily Fibonacci 61.8%||108.93|
|Daily Pivot Point S1||108.85|
|Daily Pivot Point S2||108.58|
|Daily Pivot Point S3||108.4|
|Daily Pivot Point R1||109.3|
|Daily Pivot Point R2||109.47|
|Daily Pivot Point R3||109.74|
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.