USD/JPY sticks with the push and pull temper on the week

The value motion within the pair has been fairly up and down on the week, with ranges now returning again to the weekly pivot round 154.21. Earlier within the day, USD/JPY was buying and selling round 155.15 within the handover from Asia to Europe. So, we’re roughly 100 pips down from there at present.

There isn’t any actual catalyst by way of headlines as merchants are nonetheless attempting to climate the post-election momentum this week. The greenback perked up once more yesterday however failed to essentially safe any main technical breaks, so it is not resulting in a lot of something on the week itself.

Within the case of USD/JPY, we’re shifting again to acquainted ranges seen earlier within the week but additionally protecting throughout the vary seen throughout final week as nicely. From the day by day chart, there’s not an excessive amount of to scrutinise because the pair is doing battle in and across the 155.00 mark for now.

Nonetheless, the near-term chart above may provide a touch for merchants to work with. There may be the crossover of the 100-hour shifting common (purple line) again beneath the 200-hour shifting common (blue line). It isn’t a lot however it may very well be a sign that worth momentum is beginning to shift the opposite manner.

For now, decrease Treasury yields can be serving to to pin down the pair with 10-year yields down almost 2 bps to four.39%.

However once more, I might be extra prepared to need to see the greenback lose tempo in opposition to the opposite main currencies to essentially name for any materials turnaround in sentiment for the buck.

As issues stand, the greenback continues to be sitting decently snug elsewhere. EUR/USD is down zero.2% as we speak to 1.0525 whereas GBP/USD is down zero.2% to 1.2630 at present. Each are additionally lingering close to the lows.

That means the greenback is protecting extra combined because it seen down barely in opposition to the franc and aussie for now. By way of threat flows, there could be some suggestion of softer sentiment with S&P 500 futures now down zero.four%. That’s largely led by a drop in tech shares after buyers are feeling disenchanted by Nvidia’s earnings overview.

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



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