- USD/JPY is struggling to find direction on Monday.
- US Dollar Index stays in the negative territory below 93.00.
- Upbeat market mood keeps safe-haven JPY’s gains limited.
The USD/JPY pair is having a difficult time making a decisive move in either direction on Monday and continues to fluctuate in a tight 25-pip range. As of writing, the pair was virtually unchanged on a daily basis at 105.80.
USD/JPY stays in range despite broad USD weakness
The risk-on market environment is weighing both on the USD and the JPY and doesn’t allow USD/JPY to break out of its range.
The US Dollar Index, which posted small gains last week, turned south on Monday and was last seen losing 0.27% on the day at 92.95. The only data from the US showed that the Federal Reserve Bank of Chicago’s National Activity Index dropped from 5.33 in June to 1.18 in July and missed the market expectation of 2.73. Nevertheless, this data had little to no impact on the USD’s market valuation.
On the other hand, the JPY remains on the back foot with global equity indexes registering impressive gains at the start of the week. Following the opening bell, the S&P 500 Index and the Dow Jones Industrial Index are both up around 0.8% on a daily basis.
There won’t be any macroeconomic data releases featured in the Japanese docket on Tuesday and the pair is likely to continue to move sideways in the near-term.
Technical levels to watch for
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