• Holds within a 3-week old trading range.
• Central bankers’ speeches in focus.
The USD/JPY pair lacked any firm directional bias and oscillated in a narrow trading band, just above mid-113.00s, through the early European session.
A combination of diverging factors has failed to provide any fresh impetus, with the pair holding within a 3-week old trading range. A modest pickup in the US Treasury bond yields helped limit the downside, while the prevalent cautious environment, which tends to support the Japanese Yen's safe-haven appeal, was seen keeping a lid on the pair's up-move.
Currently trading around the 113.65 region, traders seemed to have largely ignored a mildly softer tone around the US Dollar, with the US bond yield dynamics and broader market risk sentiment turning out to be key determinants of the pair's momentum on Tuesday.
Today's speeches from key central bankers, including the BoJ Governor Haruhiko Kuroda and the Fed Chair Janet Yellen, would be looked upon for some impetus ahead of the US PPI print, later during the NA session.
Technical levels to watch
Immediate resistance is pegged near the 114.00 handle, above which the pair is likely to dart towards 114.30-40 supply zone en-route multi-month highs resistance near the 114.75 region.
On the downside, 113.45-40 zone is likely to act as immediate support, which if broken could accelerate the slide towards 113.15 horizontal support ahead of the 113.00-112.90 strong support.
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