Home USD/JPY remains on track to finish the week flat near 108.60
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USD/JPY remains on track to finish the week flat near 108.60

  • 10-year US Treasury bond yield moves sideways on Friday.
  • Wall Street looks  to open the day little changed.
  • US Dollar Index remains stuck in tight range near 97.70.

The USD/JPY pair continues to move sideways in its 50-pip weekly range near the 108.50 mark and remains on track to finish the week virtually unchanged.

During the first half of the week, the upbeat market mood on the back of renewed United States (US)-China trade optimism and heightened hopes of the United Kingdom (UK) coming out of the European Union (EU) made it difficult for the JPY to find demand but the pair’s upside was capped by the broad-based selling pressure surrounding the Greenback.  

US Dollar Index looks to post modest weekly gains

In the second half of the week, the USD gathered strength after the Markit’s Manufacturing Purchasing Managers’ Index (PMI) came in better than expected. However, reviving concerns over a no-deal Brexit after British Prime Minister Boris Johnson called for a snap election on December 12th allowed the JPY to stay resilient against the USD and, once again, forced the pair to stay directionless.

The US Dollar Index, which tracks the USD’s performance against a basket of six major currencies, is now at 97.70 and is headed to snap its three-week losing streak.

There won’t be any macroeconomic data releases in the remainder of the day. Furthermore, the 10-year US Treasury bond yield and the S&P 500 Futures are both flat on the day to suggest that the pair’s action is unlikely to be impacted by the risk perception.

Technical levels to watch for

 

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