- Greenback remains under pressure for the fourth straight day.
- Wall Street starts the day on a positive note.
- USD/JPY struggles to stay above 110.
Despite the broad-based selling pressure witnessed on the greenback, the USD/JPY pair is trading a relatively tight range when compared to other major pairs. As of writing, the pair was trading at 109.95, losing 0.2%, or 20 pips, on the day.
The improved market sentiment on Thursday makes it difficult for the traditional safe-haven JPY to gather strength against its rivals. AAfter closing the previous day with substantial gains, Wall Street started the day on a positive note with the Dow Jones Industrial Average and the S&P 500 adding 0.45% and 0.25% respectively in the first hour of trading.
On the other hand, the investors continue to price a hawkish ECB next week and stay away from the greenback. Moreover, a lack of fresh macroeconomic data releases that could help the USD attract some interest from the markets keeps the DXY near its multi-week low, which was set at 93.20 earlier today. At the moment, the index is at 93.40, down 0.2% on the day.
The next data of importance for the pair will be the Q1 GDP growth data from Japan, which is expected to show a contraction of 0.1% (QoQ) and 0.4% (YoY9.
Technical levels to consider
109.95 (200-DMA) is seen as a critical support for the pair. A daily close below that level is likely to bring in more sellers and drag the pair to 109.45 (Jun. 5 low) and 109.10 (50-DMA). On the upside, resistances align at 110.25 (Jun. 6 high), 111 (psychological level) and 111.40 (May 21 high).
Share
