USD/JPY On The Rebound, But The 110.50 Level Remains Elusive
The USD/JPY is bouncing at the tail end of Wednesday’s Asian session, and the US Dollar is rebounding into 110.45 after dipping to a low of 110.27.
The US Dollar backslid against the Yen this week after broader markets briefly sold off the USD, but traders continue to pick the US Dollar back up and the USD/JPY is back on the rise after marking in a new low for the week in early Wednesday trading.
Wednesday’s upcoming US session will see constrained volumes with the US markets dark for the July 4th holiday, but this Friday will see another installment of the Non-Farm Payrolls, and traders will be looking towards the key report to see if the US economy is able to maintain its current run of economic growth.
The pair extended previous session’s retracement slide from six-week tops and continues to be weighed down by global flight to safety. Overnight sharp slide in the US equities spilt-over to the Asian Markets and was eventually seen benefitting the Japanese Yen’s safe-haven appeal.
Adding to this, a follow-through US Dollar retracement slide, amid persistent trade-war concerns, exerted some additional downward pressure and further collaborated to the pair’s offered tone.
The selling bias now seems to have abated a bit, at least for the time being, as traders now seemed reluctant to place aggressive bets and remain on the sidelines in wake of the Fourth July holiday in the US.
The sentiment weighed heavily on the dollar and the DXY closed NY down -0.29% having traded better offered between an overnight range of 94.5620-94.9780. As for treasuries, the US 10yr treasury yield fell from 2.88% to 2.83%, while 2yr yields fell from 2.56% to 2.53%. Fed fund futures yields continued to price 1 陆 more hikes in 2018 The Fed fund futures yields continued to price 1 more hikes in 2018.
Wall Street was also on the downbeat and this helped USD/JPY bears along the way down, aided by weaker treasury yields where a correlation in the pair to lower oil, (ran shipping threat), was also evident.
Trade Suggestion Buy USD/JPY At: 110.550, Take Profit At: 110.768, Stop Loss At: 110.445