USD/JPY up on the day however consumers face a stern technical check

The greenback might need surrendered positive aspects elsewhere on the session however USD/JPY is proving to be an exception to that a minimum of for now. The pair is up zero.5% to 152.15 at present and is holding underpinned in European buying and selling. There’s not a lot of a catalyst however Treasury yields additionally holding a contact increased is probably serving to.

An attention-grabbing growth since yesterday is Trump making a few feedback about some points with debt that Elon Musk’s “authorities effectivity group” has discovered. Trump stated that:

“There could possibly be an issue, you’ve been studying about that, with Treasuries. That could possibly be an attention-grabbing downside as a result of it could possibly be that quite a lot of these issues don’t depend. Subsequently perhaps we have now much less debt than we considered.”

It is one thing to think about within the image because the Bloomberg report recommended that Trump might even disregard some funds.

That might blow up into an actual difficulty and with increased threat premiums doubtlessly triggered, it might power market gamers to dump Treasuries. In flip, that is a key driver to underpin yields and USD/JPY.

It is all conjecture at this level. And I imply, it is simply Trump being Trump. However do hold an eye fixed out right here.

As for the technical aspect of issues for USD/JPY, the pair is perhaps buying and selling up at the moment however it’s not indicative of a lot but.

The confluence of the 100 (pink line) and 200-day (blue line) transferring averages at 152.68-70 continues to be holding and that may hold sellers to keep up some draw back strain after the break decrease final week.

This text was written by Justin Low at www.ubaidahsan.com.



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