- Weaker T-yields, uncertainty over US-Japan trade deal offset firmer DXY and US equity futures.
- Range-play to extend ahead of the US macro releases amid trade-related headlines?
The USD/JPY pair continues to face some selling pressure at the higher levels near 109.60 region, keeping the bias leaning towards the downside amid uncertainty over the US-Japan trade deal weighs on the investors’ sentiment.
The recent comments by the Japanese government officials, Motegi and Aso, on a potential US-Japan trade deal were contradictory that helped underpin the safe-haven appeal of the Japanese Yen. Japanese Economy Minister Motegi said that Japan is not in full agreement yet with the US on trade while the FinMin Aso noted Japan and the US have a deeper understanding on trade.
Moreover, the downside remains compelling amid the sell-off seen in the Treasury yields across the curve amid increased speculation of a Fed rate cut this year following the recent series of downbeat US fundamentals. However, the risk-on action seen in the US equity futures and a broadly stronger US dollar continue to keep a check on the move lower.
The focus now remains on the upcoming US macro news, including the key CB consumer confidence release at 1400 GMT, for fresh dollar trades and the next direction on the USD/JPY pair. Meanwhile, the spot will remain at the mercy of the broader market sentiment amid Brexit woes and trade concerns.
USD/JPY Technical Levels
Share
