USD/JPY trying to stabilize around 110.00 mark

Haresh Menghani FXStreet

After yesterday's pull-back from near two-month lows, the USD/JPY pair seems to have entered a consolidation phase and was seen oscillating in a narrow trading band around the key 110.00 psychological mark.

Today's disappointing release of Core Machinery Orders data from Japan was largely negated by better than expected PPI print and did little to influence the Japanese Yen; while a modest pickup in the US Dollar demand was seen protecting immediate downside for the major.

Moreover, signs of stability returning back to global financial markets, following yesterday's turbulent session on escalating geopolitical tensions between the US and N. Korea, might have also held traders back from initiating fresh bearish bets, eventually leading to subdued/range bound price action through Asian session Thursday.

Today's US economic docket features the release of PPI print and weekly jobless claims, which would be looked upon to grab some short-term trading opportunities. The key focus, however, would remain on Friday's consumer inflation figures from the US, which might influence Fed rate hike expectations and help determine the pair's near-term trajectory.

• Key data coming up from US session? - Nomura

Technical outlook

Omkar Godbole, Analyst and Editor at FXStreet writes: "An erratic recovery from the low of 109.56 failed to take out the downward sloping 5-DMA in the Asian session today. When viewed in light of the drop in the risk reversals, the rejection at the 5-DMA suggests the spot is more likely to revisit yesterday’s low of 109.56 and 109.45 [support offered by the trend line sloping upwards from the April 17 low and June 14 low]."

"An end of the day close below 109.45, coupled with a break below 2.15 on the yield spread chart would be an advance indicator of a big sell-off to sub-108.00 levels. On the higher side, only an end of the day close above 110.98 [61.8% Fib R of 108.80-114.49] would revive the bullish trade" he added.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

AUD/USD sits near monthly high, around 0.7035 on hawkish RBA

AUD/USD trades around 0.7030-0.7035 in the Asian session on Thursday, near its monthly top, as recent hawkish comments from RBA officials continue to underpin the Australian Dollar. The US Dollar, meanwhile, struggles to lure buyers amid further declines in US bond yields, adding support to the pair. However, Fed rate-hike bets and geopolitical uncertainty help limit losses for the safe-haven buck, warranting caution for Aussie bulls.

USD/JPY remains confined in a familiar range; holds steady above 158.00

USD/JPY extends its consolidative price action through Thursday's Asian session, trading just above 158.00 amid diverging forces. Uncertainty over the timing of the next BoJ rate hike keeps Japanese Yen bulls on the defensive. The US Dollar, meanwhile, languishes near multi-week low amid declining US bond yields. Furthermore, looming intervention risks limit JPY losses and cap the pair. Traders also seem hesitant ahead of the Fed and BoJ meetings next week.

Gold hangs near one-week low; eyes $4,100 break amid Fed hike bets

Gold attracts fresh sellers in Thursday’s Asian session, sliding closer to a one-week low touched the previous day. Firming expectations for an imminent Fed rate hike, bolstered by oil-driven inflation risks, weigh on the non-yielding bullion. Meanwhile, declining US bond yields counter geopolitical uncertainty, keeping US Dollar bulls on the defensive. This helps XAU/USD defend $4,100.

Dogecoin Labs launches, resistance looms

Dogecoin (DOGE) Labs launched Wednesday in partnership with the Dogecoin Foundation, bringing together several product teams and technologies to expand the use of the memecoin (DOGE) across payments, decentralized finance (DeFi) and consumer applications. The launch will consolidate MyDoge, DogeOS and Such App under one business, led by Jordan Jefferson, founder of MyDoge and DogeOS.

What the midterm elections mean for Treasury yields, the Dollar and Gold

Democrats are priced to take the House, so November 3 comes down to the Senate and how much Washington can borrow without the other party. Treasury yields will show the answer first, then the Dollar and Gold. On November 3, Americans vote for all 435 House seats and 35 Senate seats. For bond prices, the result comes down to one thing: how much the government will borrow over the next two years.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.