- Nikkei 225 index consolidates the recovery gains.
- USTs turns positive again.
- CB speeches, US PPI in focus.
The USD/JPY pair continues to move back and forth in a 15-pips tight range so far this Tuesday, as the bulls take a breather after the recent upsurge and await fresh impetus from the upcoming central bankers’ speeches and US macro news.
The Nikkei 225 recovery stalls post-poor China data dump
Over the last hours, the spot is seen struggling hard to extend the upmove beyond 113.72/75 levels, despite a fresh bid caught by the US Treasury yields. Meanwhile, the Nikkei 225 index trims the recovery gains post the release of downbeat Chinese economic data, restricting further upside in USD/JPY.
More so, markets turn cautious and prefer to remain in a wait-and-see mode ahead of the speeches due on the cards from the BoJ Governor Kuroda and Fed Chair Yellen at the ECB conference, which could bring the monetary policy divergence between the Fed and BOJ back to the fore. Also, of note remains the US PPI data slated for release in the NA session.
USD/JPY Levels to consider
Jim Langlands at FX Charts noted: “On the downside, support will be seen at 113.20 and then again at 112.95/00, below which there is only minor support to be seen ahead of the mid-October low at 112.30 although I don’t think we head this far today. On the topside, minor resistance now lies at 113.70 and 113.85, ahead of 114.00 and the 9 Nov high of 114.06. Above here, unlikely today, could return to 114.35/45 and beyond, towards the 114.73, 6th Nov high, but above which could see a test of the descending trend resistance, currently at around 114.90.”
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