“¢ A modest uptick in the US bond yields helped revive the USD demand.
“¢ The prevalent cautious mood underpins JPY and seemed to cap gains.
“¢ Traders now eye US durable goods order data for some fresh impetus.
The USD/JPY pair managed to recover a major part of its early decline, albeit remained well within the previous session’s trading range.
With investors looking past Tuesday’s softer US consumer inflation figures, a modest rebound in the US Treasury bond yields helped revive the US Dollar demand and turned out to be one of the key factors lending some support to the major.
However, the prevalent cautions mood, as depicted by a weaker tone around equity markets, underpinned the Japanese Yen’s safe-haven demand and seemed to keep a lid on any meaningful up-move for the major, at least for the time being.
It would now be interesting to see if the pair is able to attract any follow-through buying interest or continues with its struggle to make it through the very important 200-day SMA barrier as market participants now look forward to the US macro data for some fresh impetus.
Today’s US economic docket highlights the release of durable goods orders data, which coupled with PPI figures might influence the USD price dynamics and eventually produce some short-term trading opportunities later during the early North-America session.
Technical outlook
Omkar Godbole, FXStreet’s own Analyst and Editor writes: “A break below 111.11 would revive the bearish view put forward by the rising wedge breakdown on the hourly chart. The pair could then challenge the previous week’s low of 110.75. On the higher side, 111.46 – the high of the rising wedge – needs to be breached to strengthen the bull grip.”
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