- The pair trades within a familiar range around the 111.00 handle.
- US 10-year yields testing session tops around 3.08%.
- FOMC minutes, ECB minutes next salient events later in the week.
The generalized softer tone around the greenback is now prompting USD/JPY tp drop to the 111.00 neighbourhood, all amidst a narrow trading range.
USD/JPY upside capped near 111.20
After recording fresh multi-month peaks near 111.40 at the beginning of the week, spot has now sparked a correction lower and returns to the 111.00 neighbourhood, where it seems to have found some decent contention.
The down move in the pair comes despite yields of the key US 10-year reference managed to rebound and test the 3.08% level, or daily highs, which acted as quite a tough hourly barrier as of late.
Governor H.Kuroda said in early trade that the central bank could signal some exit plans from the ultra loose monetary policy stance once prices pick up.
In the meantime, the FOMC minutes due tomorrow should be the salient event this week along with the speech by Fed’s J.Powell on Friday.
USD/JPY levels to consider
As of writing the pair is losing 0.09% at 110.96 and a break below 110.21 (200-day sma) would target 109.74 (21-day sma) en route to 108.64 (low May 4). On the other hand, the next hurdle lines up at 111.39 (high May 21) would open the door to 111.50 (high Jan.18) and finally 113.39 (2018 high Jan.8).
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD post moderate gains on solid US data, weak Aussie PMI
The Australian Dollar registered solid gains of 0.65% against the US Dollar on Thursday, courtesy of an upbeat market mood amid solid economic data from the United States. However, the Federal Reserve’s latest monetary policy decision is still weighing on the Greenback. The AUD/USD trades at 0.6567.
EUR/USD recovers to top end of consolidation ahead of Friday’s US NFP
EUR/USD drove back to the top end of recent consolidation on Thursday, recovering chart territory north of the 1.0700 handle as market risk appetite regains balance heading into another US Nonfarm Payrolls Friday.
Gold recoils on hawkish Fed moves, unfazed by dropping yields and softer US Dollar
Gold price clings to the $2,300 figure in the mid-North American session on Thursday amid an upbeat market sentiment, falling US Treasury yields, and a softer US Dollar. Traders are still digesting Wednesday’s Federal Reserve decision to hold rates unchanged.
High hopes rouse for TON coin with Pantera as its latest investor
Ton blockchain could see more growth in the coming months after investment firm Pantera Capital announced a recent investment in the Layer-one blockchain, as disclosed in a blog post on Thursday.
NFP: The ultimate litmus test for doves vs. hawks
US Nonfarm Payrolls will undoubtedly be the focal point of upcoming data releases. The estimated figure stands at 241k, notably lower than the robust 303k reported in the previous release and below all other readings recorded this year.