- USD/JPY remains on track to post small daily gains.
- US Dollar Index holds above 90.15 after Powell's testimony.
- Wall Street's main indexes trade deep in the negative territory.
The USD/JPY pair fell below 105.00 for the first time in a week on Tuesday but reversed its direction during the early trading hours of the American session. After touching a fresh daily high of 105.43, however, the pair lost its traction and was last seen trading at 105.22, where it was up 0.15% on a daily basis.
DXY looks to post modest daily gains
Earlier in the day, the rebound witnessed in the US Dollar Index (DXY) helped USD/JPY push higher. The DXY jumped to a daily top of 90.26 after Wall Street's main indexes started the day sharply lower but struggled to stretch higher.
During his semi-annual testimony before the Senate Banking Committee on Tuesday, FOMC Chairman Jerome Powell reiterated that they will keep the monetary policy accommodative. "We have a significant ground to cover before getting even close to full employment," Powell added and the greenback failed to preserve its bullish momentum. At the moment, the DXY is up 0.15% on the day at 90.15.
Meanwhile, the data published by the Conference Board showed that the Consumer Confidence Index for February edged higher to 91.3, compared to analysts estimate of 90, but was largely ignored by market participants.
There won't be any macroeconomic data releases from Japan on Wednesday and USD/JPY could have a tough time making a decisive move in either direction during the Asian session.
Technical levels to watch for
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.
Latest Forex News
Editors’ Picks
GBP/USD falls off the highs ahead of central bank speeches
GBP/USD is trading above 1.41 but off the new 2021 peak of 1.4240. Speculation about a quicker UK reopening and rate hikes from the BOE. Governor Bailey and Fed Chair Powell are set to speak later.
EUR/USD eases as higher yields push the dollar higher
US Treasury yields are back up, flirting with one-year highs and backing dollar’s gains. EUR/USD trades near daily lows in the 1.2130 area ahead of Powell’s second testimony.
ADA bulls light up the fire for a massive 80% move
Cardano has broken above an ascending triangle’s hypotenuse, kick-starting upswing to $1.4. Technical levels are generally improving, as reinforced by the bullish MACD indicator. A correction will return into the picture if ADA fails to hold above the 50 SMA.
XAU/USD struggles for direction, stuck in a range above $1800 mark
Gold struggled to capitalize on its intraday positive move and remained confined in a range. The underlying bullish sentiment, pickup in the US bond yields collaborated towards capping. The bias seems tilted in favour of bearish traders and supports prospects for further weakness.
US Dollar Index: Looks neutral/bearish near-term
DXY keeps the rangebound trading in the 90.00 region, always supported by the key 2020-2021 support line (near 89.80).