- The recent USD bullish run got an additional boost from upbeat US Q2 GDP print.
- Trade optimism undermined JPY's safe-haven demand and remained supportive.
- Investors now seemed reluctant ahead the central bank meetings – BoJ and the Fed.
The USD/JPY pair reversed an early Asian session dip and is currently placed at the top end of its daily trading range, around the 108.65 region.
The pair kicked off the new week on the defensive and pulled away from Friday's 2-1/2 week tops, touched in the aftermath of upbeat US GDP growth figures for the second quarter of 2019. The latest US GDP report showed that the economy expanded by 2.1% annualized pace during the three months to June and further lowered chances of an aggressive interest rate cut move by the Fed.
The data lifted the US Dollar to a two-month high and assisted the pair to build on its recent positive momentum, albeit lacked any strong bullish conviction. Investors now seemed reluctant to place any aggressive bets and preferred to wait on the sidelines ahead of the central bank meetings - starting with the BoJ policy update on Tuesday and the highly anticipated Fed decision on Wednesday.
Ahead of the key event risks, the prevalent cautious mood underpinned the Japanese Yen's safe-haven demand and exerted some downward pressure at the start of a new trading week. The downside, however, remained limited amid some renewed optimism over a possible resolution to the prolonged US-China trade dispute.
With investors still awaiting fresh trade-related updates, it will be prudent to wait for a sustained move in either direction before traders start positioning for any meaningful intraday momentum amid absent relevant market-moving US economic releases on Monday.
Technical levels to watch
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
GBP/USD trims a part of intraday losses, down a little below 1.3200 ahead of BoE
The GBP/USD pair finds some support near the 1.3150 region on Thursday and for now, seems to have stalled its retracement slide from the 1.3300 neighborhood, or the highest level since March 2022 touched the previous day.
EUR/USD holds higher ground above 1.1100, focus shifts to ECB-speak
EUR/USD is holding higher ground above 1.1100 in the early European session on Thursday. The pair is underpinned by the renewed US Dollar retreat, as traders digest the Fed's dovish outlook, bracing for ECB-speak for fresh trading incentives. US data are also eyed.
Gold defends $2,550 in the Fed’s aftermath, ahead of US data
Gold price is defending $2,550 early Thursday, catching a breath after intense volatility witnessed in the aftermath of the all-important US Federal Reserve monetary policy announcements and Fed Chairman Jerome Powell’s press conference.
Bitcoin surges to $62,000 mark after 50 bps Fed rate cut
Bitcoin and Ripple eye for a rally as they break and find support around their resistance barrier. Meanwhile, Ethereum demonstrates signs of recovery as it approaches a critical resistance level, indicating that an upward rally could be on the horizon if it successfully breaks through.
Australian Unemployment Rate expected to hold steady at 4.2% in August
The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.