- USD/JPY has been going sideways within a thin 109.60-109.90 range.
- Markets are looking forward to the release of the FOMC minutes of the March meeting for direction.
USD/JPY has been going sideways for the most part since the start of Wednesday’s Asia Pacific session. The pair is currently trading just above the lows of the day in the 109.60s, close to the bottom of its intra-day 109.60-109.90 range. To the downside, there is a key area of support around the 109.40 mark, with the mid-March highs, the 29 March low and the 21-day moving average all coinciding with one another.
Driving the day
It’s been an uneventful session so far in terms of fundamental catalysts. On the data front, US trade numbers in the month of February saw the country post another record trade deficit of above $70B for the first time. Meanwhile, in terms of the latest on the pandemic, concerns persist regarding the spread of the virus in India, Japan, South Korea and Europe, while UK and EU medical agencies just released updated guidance for the AstraZeneca vaccine, with the former stating that the jab is linked to rare blood clots, though the benefits of taking the vaccine still outweigh the risks.
Given the lack of fundamental catalysts on the session so far, it is unsurprising to see USD/JPY rangebound. The pair is reflective of a broader sense of market indecision; US equities are narrowly mixed/flat, the US dollar is mixed versus its major counterparts and the DXY flat, while US government bond yields are very modestly lower with the 10-year yields just under 1.65%. The main event of the session, after which markets may be able to find some renewed direction, is the release of the minutes of the FOMC’s March meeting at 19:00BST.
“The release of the Fed Minutes on Wednesday should provide some indication about how committed the FOMC is to keeping interest rates at current lows” says Capital Economics. Other desks note that one key point of interest will be any reference the minutes make to the frequency of opinions expressed in favour of tightening policy earlier if the Fed’s current forecasts come into fruition. “If the minutes bring forward market expectations of interest rates hikes then the US dollar could strengthen, putting downward pressure on commodity prices” comments Capital Economics – silver is, of course, likely to be included in the commodity prices that would fall if the minutes came out more hawkishly than expected.
|Today last price||109.65|
|Today Daily Change||-0.10|
|Today Daily Change %||-0.09|
|Today daily open||109.75|
|Previous Daily High||110.55|
|Previous Daily Low||109.67|
|Previous Weekly High||110.97|
|Previous Weekly Low||109.37|
|Previous Monthly High||110.97|
|Previous Monthly Low||106.37|
|Daily Fibonacci 38.2%||110.01|
|Daily Fibonacci 61.8%||110.22|
|Daily Pivot Point S1||109.43|
|Daily Pivot Point S2||109.11|
|Daily Pivot Point S3||108.54|
|Daily Pivot Point R1||110.31|
|Daily Pivot Point R2||110.87|
|Daily Pivot Point R3||111.19|
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.