USD/JPY remains stuck in narrow range below 104.00
- USD/JPY is struggling to find direction on Tuesday.
- Wall Street's main indexes look to open modestly lower.
- US Dollar Index turns flat near 90.40 following the earlier climb.
The USD/JPY pair closed the first day of the week virtually unchanged and continues to have a tough time making a decisive move in either direction on Tuesday. As of writing, the pair was up only 5 pips on the day at 103.78.
Eyes on Wall Street
The positive shift witnessed in risk sentiment during the European trading hours seems to be hurting both the JPY and the USD, forcing USD/JPY to stay confined in its daily range. At the moment, Germany's DAX 30 Index is gaining 1.5% and the Euro Stoxx 50 Index is rising 1.1%.
Despite the European stocks' upbeat performance, S&P 500 Futures are posting small daily losses as investors await this week's key quarterly earnings figures and fresh developments surrounding the US stimulus bill. US President Joe Biden noted that he is ready to negotiate the $1.9 trillion relief bill, raising concerns over potential delays and the final amount. Meanwhile, the US Dollar Index is flat on the day at 90.38.
Later in the day, the Housing Price Index and the Conference Board's Consumer Confidence data from the US will be looked upon for fresh catalysts. Market participants will keep a close eye on risk perception in the remainder of the day as well.
In the early trading hours of the Asian session on Wednesday, the Coincident Index and the Leading Economic Index data will be featured in the Japanese economic docket.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
