- The dollar with mixed results in the market.
- USD / JPY supported by rising yields and recovery in stock markets.
The USD / JPY continues to move sideways, with a bullish tone towards the American session, although still limited by the strong short-term barrier of 113.75 / 80. The pair peaked at 113.77 and then fell to 113.54.
Without data ahead of impact for Tuesday from the US, the placement of 20-year debt in the US stands out. The focus also continues on the Congress where Democrats continue to seek Manchin’s vote for Biden’s social spending package. With no speeches from Fed officials ahead, the next major US data will be released on Wednesday (GDP) and Thursday (personal income and spending and unemployment benefit claims).
The other focus is on the US bond market where yields on Tuesday registered a moderate advance, which together with the rise in Wall Street futures is supporting the USD / JPY.
In Japan, the December report from the cabinet indicated a rebound in economic activity, and improved expectations for consumption, the labor market and business confidence. He warned by the impact of Ómicron.
Very short-term outlook
The USD / JPY has a slight bullish bias, but to enable more raises it needs to break the strong barrier of 113.75 / 80. In case of doing so, a test at 114.00 would be expected, where the next resistance is.
Failing 113.80, the focus will shift back to support where the day’s lows are at 113.55. The break of that level would expose Tuesday’s floor at 113.35. Below the next support is at 113.10.
Technical levels
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