USD/JPY resists welcoming bears above 133.00 on mixed options market signals

Anil Panchal FXStreet

USD/JPY pares intraday losses around 133.30 heading into Monday’s European open, after snapping a two-day uptrend earlier in the day.

In doing so, the USD/JPY tracks yields amid mixed data, softer-than-expected Japan Gross Domestic Product (GDP) versus firmer Industrial Production for June.

Also troubling the USD/JPY pair is the lack of uniformity among the options market traders. That said, the one-month risk reversal for the yen pair, a difference between the call options and the put options, rose during the last two days but marked the weekly negatives. It’s worth noting that the daily RR rose 0.110 and 0.025 levels in the last two days but the weekly RR dropped to -0.025 on the weekly basis.

On the other hand, US 10-year Treasury yields remain pressured near 2.84% by the press time.

Also read: USD/JPY retreats towards 133.00 on softer Japan GDP, yields ahead of Fed Minutes

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD keeps the offered stance just above 1.1700

EUR/USD is coming under heavy selling pressure in what has been a rather grim start to the new trading week, with the pair now trading close to the 1.1700 support area as the US Dollar stages a solid rebound. The prevailing flight to safety mood continues to favour the Greenback, as investors react to the escalating conflict in the Middle East and trim risk exposure across the board.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold trims losses, back below $5,400

Gold now surrenders part of the earlier advance past the $5,400 mark per troy ounce at the beginning of the week. Indeed, the precious metal’s strong uptick remains fuelled by increasing geopolitical tensions in the Middle East amid the intense demand for safer assets.