USD/JPY steady below the 114 handle again, where next?
USD/JPY remains steady below the 114 handle again.
The US dollar was taken down overnight, down 0.3%.
USD/JPY drops back from a fresh 7-month high.
Currently, USD/JPY is trading at 113.76, down -0.02% on the day, having posted a daily high at 113.83 and low at 113.69. USD/JPY, stationary after losing the 114 handle again, having dropped back from a fresh 7-month high scored in Asia (post BOJ's Kuroda dovish speech), now trades with a bearish bias in the absence of foreseen domestic catalysts for the Asian shift where heads turn towards the RBA interest rate decision instead.
US dollar takes a hit and US 10yr treasury yields dropping from 2.34% to 2.32%
The dollar took a hit overnight on the back of the US 10yr treasury yields dropping from 2.34% to 2.32% making for a two-week low, weighing on the pair in the absence of data on Monday. The DXy ended down by 0.3% despite the Fed fund futures yields that continued to price the chance of a December rate hike at 97%.
As far as Fed speakers, commentary came from Dudley and Williams, Dudley who expected inflation to drift higher over time, and Williams, who thought a debate on inflation targeting should begin. For data, looking ahead to the US shift instead, the September JOLTS data will be released and Fedspeak involves Quarles on financial regulation at The Clearing House’s Annual Conference.
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Valeria Bednarik, chief analyst at FXStreet explained that, technically, the 4 hours chart shows that the price remains well above its moving averages that maintain their bullish slopes, but noted that the Momentum indicator holds flat around its 100 level while the RSI gains downward strength, currently at 44, leaning the scale towards the downside in the short-term. "Thursday's low a 113.53 is the immediate support en route to the 113.20 region, with a break below this last probably signalling a steeper decline for this Tuesday," Valeria added.