USD/JPY vs US Treasury 10-year yields (%) hourly chart
The worth motion within the pair has been reasonably up and down on the week, with ranges now returning again to the weekly pivot round 154.21. Earlier within the day, USD/JPY was buying and selling round 155.15 within the handover from Asia to Europe. So, we’re roughly 100 pips down from there at present.
There is not any actual catalyst when it comes to headlines as merchants are nonetheless attempting to climate the post-election momentum this week. The greenback perked up once more yesterday however failed to actually safe any main technical breaks, so it isn’t resulting in a lot of something on the week itself.
Within the case of USD/JPY, we’re transferring again to acquainted ranges seen earlier within the week but additionally maintaining inside the vary seen throughout final week as properly. From the day by day chart, there’s not an excessive amount of to scrutinise because the pair is doing battle in and across the 155.00 mark for now.
Nonetheless, the near-term chart above may provide a touch for merchants to work with. There’s the crossover of the 100-hour transferring common (pink line) again beneath the 200-hour transferring common (blue line). It isn’t a lot nevertheless it may very well be a sign that worth momentum is beginning to shift the opposite approach.
For now, decrease Treasury yields can also be serving to to pin down the pair with 10-year yields down almost 2 bps to 4.39%.
However once more, I might be extra keen to need to see the greenback lose tempo towards the opposite main currencies to actually name for any materials turnaround in sentiment for the buck.
As issues stand, the greenback continues to be sitting decently snug elsewhere. EUR/USD is down 0.2% at the moment to 1.0525 whereas GBP/USD is down 0.2% to 1.2630 at present. Each are additionally lingering close to the lows.
That implies the greenback is maintaining extra blended because it seen down barely towards the franc and aussie for now. When it comes to danger flows, there is likely to be some suggestion of softer sentiment with S&P 500 futures now down 0.4%. That’s largely led by a drop in tech shares after buyers are feeling upset by Nvidia’s earnings overview.
