- Bond markets and stock markets are closed in the U.S.
- US Dollar Index clings to small daily gains above 97.70.
- No specific data is set for a US-Japan trade deal.
The USD/JPY pair is moving sideways in a very tight range on Monday as the trading volume remains thin amid the Memorial Day holiday in the U.S. As of writing, the pair was up 0.22% on a daily basis at 109.53.
Earlier today, the Coincident Index and the Leading Economic Index from Japan came in worse than expected but was largely ignored by the market participants. Meanwhile, commenting on the U.S. President Trump’s visit to Japan, Chief Cabinet Secretary Suga told reporters there was no specific date set for the U.S. and Japan to make a trade deal. Similarly, Deputy Chief Cabinet Secretary Nishimura said that President Trump and Japanese PM Abe had not reached a trade agreement yet.
On the other hand, the US Dollar Index, which fell sharply in the second half of the previous week following a rally to a two-year high, rose modestly on Monday to help the pair move into the positive territory. The fact that there were no fundamental drivers that could have impacted the greenback’s valuation today suggests that the DXY’s action was largely technical.
On Tuesday, the Conference Board’s Consumer Confidence Report from the U.S. will be looked upon for fresh impetus. Markets will also be paying close attention to the 10-year T-bond yield, which remains dangerously close to the multi-year low that was set last week.
Technical levels to consider