- Market activity turns subdued ahead of Christmas break.
- US Dollar Index goes into consolidation following Friday’s rally.
- Durable Goods Orders in US is expected to increase 1.5% in November.
The USD/JPY pair fluctuated in a 50-pip range last week and struggled to make a decisive move in either direction. At the start of the new week, the pair remains stuck in its 10-day-old range and was last seen trading at 109.40, down 0.04% on a daily basis.
Markets already in holiday mood
Although comments from US President Donald Trump, who noted that China has already started ramping up agricultural imports from the US and said that the trade deal may be signed soon, pointed to further progress toward de-escalation of the conflict, the market sentiment remains neutral ahead of the Christmas break.
While major European equity indexes are trading mixed, the 10-year US Treasury bond yield is down 0.3% on the day and the S&P 500 futures are posting modest daily gains.
In the second half of the day, Durable Goods Orders, Chicago Fed National Activity Index and New Home Sales will be released from the US. The next data that could potentially impact the pair’s movement will be the inflation report from Japan during the early trading hours of the Asian session on Friday.
Technical levels to watch for
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