USD/JPY stages modest rebound to mid-107s in early NA session
- USD/JPY finds interim support at 107.25 on Monday.
- US Dollar Index stays in daily range a little above 96.
- Wall Street opens modestly higher as investors move to sidelines.
The USD/JPY pair spent the first half of the day in a tight range below the 107.50 mark and staged a modest rebound during the American trading hours. As of writing, the pair, which touched a session top of 107.55, was trading at 107.41, adding 0.1% on a daily basis.
A positive start witnessed in Wall Street on Monday helped the pair gain traction as it made it difficult for the safe-haven JPY to find demand. Nevertheless, the lack of fundamental drivers didn't allow the pair's recovery attempt to gather momentum. Furthermore, with investors continuing to price expectations of a Fed rate cut in July, the greenback struggles to outperform any of its major rivals.
Today's data from the U.S. showed that the Chicago Fed's National Activity Index improved slightly to -0.05 in May from -0.48 in April while the Dallas Fed Manufacturing Index slumped to -12.1 in June to miss the market expectation of 4.8 by a wide margin. The US Dollar Index largely ignored these data and was last at 96.10, where it was virtually unchanged on a daily basis.
During the Asian session on Tuesday, the Bank of Japan will release the minutes of its June monetary policy meeting. Last week, Governor Kuroda said that it was possible to keep the current low rates beyond the spring of 2020.
Technical levels to consider
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.
