“¢ The USD remains depressed amid increasing bets for a Fed rate cut.
“¢ Improving risk sentiment weighs on the JPY and lends some support.
“¢ Investors now look forward to the US jobs report for a fresh impetus.
The USD/JPY pair held steady and was seen oscillating in a narrow trading band, around mid-108.00s through the Asian session on Friday.
A combination of diverging forces failed to provide any meaningful impetus or assist the pair to build on this week’s attempted bounce from nearly five-month lows and led to a subdued/range-bound price action on the last trading day of the week.
The US Dollar remained on the defensive amid increasing bets that the Fed will eventually cut interest rates before the end of this year, reinforced by the recent comments from influential FOMC officials – including the Fed Chair Jerome Powell.
The negative factor, to some extent, was negated by improving global risk sentiment, which was seen weighing on the Japanese Yen’s relative safe-haven status and turned out to be the only factor helping limit any further downfall, at least for the time being.
Moreover, investors also seemed reluctant to place any aggressive bets and preferred to wait on the sidelines ahead of Friday’s key event risk – the release of the closely watched US monthly jobs report (NFP), which further collaborated to the consolidative price action.
Technical levels to watch
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