USD / JPY capped above 113.50, consolidates below 114.00

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  • The US dollar is rising but remains capped below 114.00.
  • Major currency crosses, unchanged ahead of key events this week.
  • USD / JPY: Set to retest 114.55 – Commerzbank.

The USD has risen in a quiet session on Monday, to trim losses after a three-day reversal from the four-year highs at 114.65. The pair USD/JPY It has been stable above 113.50 on Monday, but has failed to post a significant recovery, with limited upside attempts below 113.85.

The dollar stabilizes ahead of key macroeconomic data

Most of the major currencies have remained trading sideways within the previous ranges, and investors await the publication of the monetary policy decisions of the European Central Bank, the Bank of Japan and the Bank of Canada plus the preliminary estimate of the Domestic Product. of the US for the third quarter.

The US dollar has been trading on a slightly firmer tone, especially during the Asian and European trading sessions. A subdued appetite for risk, reflected in positive equity markets, has weighed on the safe-haven Japanese yen. Most European markets have closed positive, while in the US, the Dow Jones is up 0.1%, the S&P index is up 0.4% and the Nasdaq index is up 0.8% driven by strong gains in stocks from Tesla and Paypal.

On the other hand, lingering concerns about inflation, with oil prices hitting new multi-year highs today, and softer US Treasury yields, have weighed on demand for the dollar. .

USD/JPY: Apuntando a 114.55 – ING

From a broader perspective, Karen Jones, Head of the FICC technical analysis research team at Commerzbank, maintains her positive outlook for the USD: “USD / JPY failed to close above the high of 114.55 in October 2018 the week last and now it’s back to the 23.6% retracement at 113.38. We should see a rally and a retry at the 114.55 high. “

Technical levels

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