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  • USD/JPY clings to small daily gains supported by risk flows. 
  • US Dollar Index stays quiet around 91.80 on Tuesday.
  • Wall Street’s main indexes look to open sharply higher.

The USD/JPY pair closed the first day of the week in the positive territory and inched modestly higher on Tuesday as the JPY continue to have a hard time attracting investors as a safe-haven. As of writing, the pair was up 0.12% on the day at 104.40.

Investors await US PMI data, Powell’s testimony 

Earlier in the day, the data from Japan showed that the Unemployment Rate in October ticked higher to 3.1% and the Jibun Bank Manufacturing PMI improved slightly to 49 to beat the market expectation of 48.3. These data, however, failed to trigger a market reaction.

Meanwhile, the global equity indexes are posting impressive gains on Tuesday, confirming that risk flows remain in control of the financial markets. At the moment, major European stock indices are up between 0.85% and 1.8% and the S&P 500 Futures are rising nearly 1%.

On the other hand, the greenback is also struggling to find demand on Tuesday and keeping USD/JPY’s upside limited. The US Dollar Index, which registered small gains on Monday, is currently down 0.12% on the day at 91.77.

Later in the day, the IHS Markit’s and the ISM’s November Manufacturing PMI reports will be featured in the US economic docket. Furthermore, FOMC Chairman Jerome Powell will be testifying before the US Congress at 1500 GMT. 

Technical levels to watch for