USD/JPY eases from multi-week top amid modest USD weakness, downside seems cushioned – by hareshmenghani USDJPY Fed Bonds RiskAppetite Currencies
A modest USD weakness turns out to be a key factor acting as a headwind for the major.USD/JPY pair
touches a nearly five-week high on Tuesday, albeit struggles to capitalize on the move and seesaws between tepid gains/minor losses through the early European session. The pair is currently placed around the 134.40-134.35 area, nearly unchanged for the day, though the fundamental backdrop seems tilted in favour of bullish traders and supports prospects for additional near-term gains.
In fact, the markets are pricing in a greater chance of another 25 bps lift-off at the next FOMC meeting in May and the bets were lifted by a rise in short-term inflation expectations. Adding to this, the New Yorkreported on Monday that its barometer of manufacturing activity in the state increased for the first time in five months. In fact, the Empire State Manufacturing Index shot to 10.8 from -24.6 in March, beating estimates.
This, in turn, remains supportive of the elevated US Treasury bond yields and favours the USD bulls. In fact, the yield on the benchmark 10-year US government bond holds steady near a multi-week top, widening the US-Japan rate differential. This, along with the Bank of Japan's dovishand a generally positive risk tone, undermines the safe-haven Japanese Yen and lends support to the USD/JPY pair.
Even from a technical perspective, the recent sustained move beyond the 50-day and the 100-day Simple Moving Averages adds credence to the near-term positive outlook. This, in turn, suggests that the path of least resistance for the USD/JPY pair is to the upside and any corrective slide is likely to get bought into. Traders now look to the US housing market data for some impetus later during the early North American session.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
USD/JPY eases from over one-month peak, trades with modest gains just below 134.00The USD/JPY pair trims a part of its modest intraday gains to over a one-month high touched earlier this Monday and retreats below the 134.00 mark dur
Consulte Mais informação »
USD/JPY traces on sluggish yields below 134.00 even as BoJ vs. Fed divergence regains attentionUSD/JPY traces on sluggish yields below 134.00 even as BoJ vs. Fed divergence regains attention – by anilpanchal7 USDJPY RiskAppetite YieldCurve BOJ Fed
Consulte Mais informação »
USD/JPY Price Analysis: Likely flex muscles above 134.00 as Fed to hike rates furtherUSD/JPY Price Analysis: Likely flex muscles above 134.00 as Fed to hike rates further USDJPY DollarIndex ChartPatterns SupportResistance Inflation
Consulte Mais informação »
USD/JPY: Next on the upside comes 134.80 – UOBFurther upside could prompt USD/JPY to revisit the 134.80 region in the next weeks, note Economist Lee Sue Ann and Markets Strategist Quek Ser Leang a
Consulte Mais informação »
USD/JPY Price Analysis: Gains momentum on rising US Treasury bond yieldsThe USD/JPY moved higher as US Treasury bond yields resumed their uptrend, following the last week’s hawkish commentary by Federal Reserve (Fed) offic
Consulte Mais informação »
USD/JPY tracks yields to retreat from five-week high below 135.00 amid BoJ, Fed concernsUSD/JPY tracks yields to retreat from five-week high below 135.00 amid BoJ, Fed concerns – by anilpanchal7 USDJPY BOJ Fed YieldCurve RiskAversion
Consulte Mais informação »