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  • The Dollar is softening on Monday, and recovering risk appetite is seeing the safe-haven Yen also take a breather, leaving the USD/JPY to twist in the middle.
  • A sedate calendar for the early week sees market sentiment maintaining firm control of flows.

The USD/JPY is trading sideways for Monday, cycling around the 110.50 level.

The Dollar-Yen pairing is drifting for the new trading week as the USD and the JPY compete to be sold off. Risk appetite has seen a resurgence for Monday despite US-China trade tensions resulting in tit-for-tat tariffs late last week. The US Non-Farm Payrolls hit in the middle, showing a better-than-expected jobs report, but wage growth remained subdued, and the Greenback is waffling across the broader market.

USD traders will be looking ahead to Thursday’s CPI reading, but the Yen will be seeing Machinery Orders late Tuesday at 23:50 GMT, and the m/m figure for May is expected to decline from 10.1% to -5.5%.

USD/JPY Technical Analysis

A ‘goldilocks’ NFP showing is seeing the US Dollar recede, and the USD/JPY is back into the key 110.50 trap, but stiff support from 110.30 could begin to wear down.

Spot rate:   110.45
Relative change:   0.09%
High:   110.52
Low:   110.34
   
Trend:   Bearish
Support 1:   110.27 (previous week low)
Support 2:   109.36 (two week low)
Support 3:   108.71 (June low)
   
Resistance 1:   110.80 (61.8% Fibo retracement level)
Resistance 2:   111.12 (previous week high)
Resistance 3:   111.39 (May technical top)

 

 

 

 

 

 

 

 

 

 

USD/JPY Chart, 1-Hour