- US dollar steady across the board, flat for the day.
- USD/JPY posts modest losses, but firm above 105.50.
The USD/JPY found support above the 105.50 area and as of writing it trades at 105.60, modestly lower for the day. Fed’s Chair Powell speech was mostly ignored by market participants. Higher US yields offer support to the pair.
In Wall Street, Dow Jones is up 0.15%, but the Nasdaq drops 0.42%, and the S&P 500 falls 0.09%. The 10-years US yield rose to 0.787%, the highest level in more than a month.
Powell is speaking at the National Association for Business Economics. So far, his words contained no surprises. He mentioned that is not the time to give priority to the US budget deficit. He warned that too-little support for the economy would lead to a weak recovery.
Technical outlook
The USD/JPY is moving without a clear trend during the American session. On the upside, it is finding resistance at 105.70 while on the downside, support is located at 105.50.
On a wider perspective, USD/JPY failed again earlier on Tuesday to break the 105.80 barrier. A consolidation above 106.00 would point to more gains ahead, probably negating the dominant bearish bias.
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