- USD remains bid vs. its main rivals on Tuesday.
- US 10-year yields advance above 2.92%, daily tops.
- Activity in US markets return after Monday holiday.
The buying interest around the greenback stays well and sound during the first half if the week and is now pushing USD/JPY back above the critical 107.00 handle, recording fresh daily highs at the same time.
USD/JPY focused on risk trends, FOMC
The pair is confirming a positive start of the week and extending the bounce off multi-month lows in the mid-105.00s recorded last Friday.
Domestic pressure from Japanese exporters in light of the recent appreciation of JPY coupled with increasing risk-on trade has combined with the better sentiment around the buck to lift spot to new 4-day highs beyond 107.00 the figure today.
It is worth recalling that price action in spot has decoupled from the performance in US yields, particularly the in the 10-year note, which have recovered the top of the range around 2.92%.
Event-wise, the FOMC minutes are due tomorrow and investors will look for further details regarding the Fed’s plans for extra tightening via rate hikes for the current year. Recall that according to CME Group’s FedWatch tool, the probability of higher rates at the March meeting is now at more than 83%, based on Fed Funds futures prices.
USD/JPY levels to consider
As of writing the pair is up 0.54% at 107.17 facing the next hurdle at 107.67 (10-day sma) seconded by 108.55 (21-day sma) and then 110.48 (high Feb.2). On the flip side, a breakdown of 105.53 (2018 low Feb.16) would open the door to 102.54 (low Nov.3 2016) and finally 101.15 (low Nov.9 2016).
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 extends gains above 1.0700, focus on key US data
EUR/USD meets fresh demand and rises toward 1.0750 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
USD/JPY keeps pushing higher, eyes 156.00 ahead of US GDP data
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, recapturing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming intervention risks. The focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold closes below key $2,318 support, US GDP holds the key
Gold price is breathing a sigh of relief early Thursday after testing offers near $2,315 once again. Broad risk-aversion seems to be helping Gold find a floor, as traders refrain from placing any fresh directional bets on the bright metal ahead of the preliminary reading of the US first-quarter GDP due later on Thursday.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.