- USD/JPY struggles to move in either direction on Tuesday.
- US dollar remains under pressure post dismal economic data.
- Yen pulls off its safe-haven appeal, GDP data in focus.
The USD/JPY pair trades almost flat with no meaningful traction in the initial Asian trading hours. The pair retreated from the high of 109.64 to close near the lower levels at 109.19 in the New York session.
At the time of writing, USD/JPY trades at 109.25, up 0.01% for the day.
The US Dollar Index (DXY), which remained under pressure below 90 on the disappointing US May jobs reports, kept the gains under check for the pair.
Investors dumped the US dollar as the inflation fear tends to wear off after softer economic data. The US Treasury yields traded below the 1.60% mark that weighed on prospects of the demand of the US dollar.
On the other hand, the Japanese Yen gains after the release of the Index of Leading Economic Indicators, which rose 103.0 in April and the Index of Coincident Economic Indicator that jumped 95.5, the highest reading since November.
The readings came before the Gross Domestic Product (GDP) data to be released today. A higher reading could strengthen the prospects for the yen’s strength. Alternatively, a lower reading could dampen the sentiment around the currency.
Meanwhile, the extension of the state of emergency in the major city of Tokyo along with eight other provinces continued to pose a threat to the yen as it could derail the prospects of fragile economic recovery. As per the reports, only 2-3% of the Japanese population is being vaccinated so far.
Investors are bracing up for the release of Japanese Current account data and Gross Domestic Product data to gauge the market sentiment.
USD/JPY additional levels
Share
