- USD / JPY is moving up and down in a tight range on Wednesday.
- The 10-year US Treasury yield is clinging to small daily gains.
- The major Wall Street indices are still on track to break their two-day losing streak.
After starting the week off on the wrong foot and suffering heavy losses on Monday, the pair USD/JPY It has entered a consolidation phase and continues to struggle to make a decisive move in either direction. At time of writing, the pair was unchanged on the day at 108.08.
US Treasury yields remain relatively quiet on Wednesday, allowing USD / JPY to extend its sideways course. The benchmark 10-year US Treasury yield largely ignored the 20-year bond auction, in which the high yield fell to 2.144% from 2.29%, and was last seen posting small gains at 1,561%.
Meanwhile, after a two-day correction, the major Wall Street indices gained traction on Wednesday, making it difficult for both the JPY and USD to find demand as safe-haven assets. Currently, the S&P 500 Index is up 0.6% on the day to 4.159 and the US Dollar Index is losing 0.06% to 91.15.
No macroeconomic data will be released on japan’s economic docket on thursday. Later in the day, investors will be closely monitoring weekly data on initial jobless claims from the US Department of Labor.
USD / JPY Outlook
Analysts at Credit Suisse believe that USD / JPY could push lower towards the upline since January at 107.56 with a break below the 107.82 / 77 support area, which is formed by the 38.2% retracement of the rally of the first quarter and the 55-day moving average.
“Immediate resistance is seen at 108.30 / 32, then follows 108.59 / 69, with 109.10 needing a bottom to see the top and our now tactical bearish outlook remains,” analysts note.
Additional levels
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