“¢ A modest pullback in the US bond yields keeps a lid on the recent positive move.
“¢ USD buying interest/risk sentiment fails to provide any meaningful bullish impetus.
“¢ Traders seemed unaffected by slightly better than expected US durable goods orders.
The USD/JPY pair extended its sideways consolidative price action and remained confined in a narrow trading range, below mid-111.00s.
The pair lacked any firm directional bias and seesawed between tepid gains/minor losses through the early North-American session, with a combination of diverging forces failing to provide any meaningful impetus and leading to a subdued/range-bound price action.
A sharp pull-back in the US Treasury bond yields turned out to be one of the key factors keeping a lid on the pair’s recent positive move to near two-week tops, albeit the prevalent US Dollar buying interest extended some support and limited any meaningful correction.
Meanwhile, a lacklustre trading action around equity markets failed to influence the Japanese Yen’s safe-haven demand, while slightly better than expected US durable goods orders data for February also failed to assist the pair to break through its daily trading range.
With the key US macro data out of the way, it would now be interesting to see if the pair is able to regain traction or continues with its struggle to make it through the very important 200-day SMA barrier, currently near the 111.45-50 region.
Technical levels to watch
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