USD/JPY sticks to gains near multi-week tops, just above mid-110.00s


   •  Gains traction for the second straight session amid the continuation of the recent USD rally.
   •  US-China trade optimism/risk-on mood dent JPY’s safe-haven demand and remains supportive.

The USD/JPY pair built on the overnight goodish up-move and climbed to over six-week tops, further beyond mid-110.00s on Tuesday.

Despite increasing chances of another partial US government shutdown, the US Dollar stood tall near 2019 high and was seen as one of the key factors driving the pair higher for the second consecutive session.

This coupled with renewed optimism over a possible resolution of the US-China trade disputes and the prevalent risk-on mood further dampened the Japanese Yen's relative safe-haven status and remained supportive.

Investors' risk-appetite got a boost following White House senior counsellor Kellyanne Conway's comments on Monday, saying that the US President Donald Trump may still meet Chinese President Xi Jinping in the near future and that it looks like the US and China are getting closer to deal. 

Hence, this week's high-level US-China trade talks, along with important US macro releases will play a key role in driving the broader market risk sentiment and eventually determine the pair's next leg of a directional move.

In the meantime, today's scheduled speeches by several FOMC officials, including the Fed Chair Jerome Powell will also be looked upon for some meaningful impetus and short-term trading opportunities.

Technical outlook

Omkar Godbole, FXStreet's own Analyst and Editor explains, “a convincing break above the bearish 10-week MA of 110.57 may remain elusive, as the RSI on the hourly chart is beginning to diverge in favor of the bears. The RSI on the 4-hour chart is also reporting overbought conditions with an above-70 print.” 

“Put simply, the 10-week MA hurdle is likely to remain intact and the psychological support of 110.00 could be put to test again. The pair, however, could make a move above 111.00 by NY close if the yield differentials spike in the USD-positive manner,” he added further.
 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD hits fresh three-week lows as optimism from German data fades

EUR/USD has hit a fresh three-week low below 1.1070 as optimism from better-than-expected German PMIs fades. The data still points to a downturn. Tension mounts ahead of Fed's Powell critical speech on Friday.

EUR/USD News

GBP/USD surges above 1.2200 on Merkel's Brexit optimism

GBP/USD is trading above 1.2250, at the highest this month after German Chancellor Merkel said a solution to the Irish backstop can be found by October 31st. UK PM Johnson is meeting French President Macron.

GBP/USD News

USD/JPY: Weaker below 106.50, focus on T-yields ahead of Powell

USD/JPY trades weaker below the 106.50 level, tracking the negative S&P 500 futures and a cautious sentiment on the Asian equities, as attention shifts from the FOMC minutes to the Fed's Powell speech for fresh direction. 

USD/JPY News

Gold plummets to fresh nine-day lows near $1,492 on surging US T-bond yields

The XAU/USD pair came under renewed bearish pressure in the last hour and broke below the critical $1,500 as the rising US Treasury bond yields made it difficult for the safe-haven gold to find demand.

Gold News

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: BTC to $50,000 or Gold to $5,000? Current crypto levels to watch

"Gold will reach $5,000" claimed Peter Schiff, a crypto critic, and a gold bug. "Bitcoin will reach $50,000," said Tom Lee. Both influences clashed on social media and on television about future prices. 

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •