- USD / JPY is going down during US trading hours.
- The major Wall Street indices are trading mixed on Tuesday.
- The US Dollar Index remains in negative territory near 90.00.
The pair USD/JPY it spent most of the day moving sideways in a very tight range near 103.70, but was under modest downward pressure during US trading hours. At time of writing, the pair was down 0.23% on the day at 103.55.
USD struggles to find demand
In the absence of important macroeconomic data releases, the perception of risk remains the main driver of financial markets. The major Wall Street indices opened at new all-time highs on Tuesday, but failed to preserve bullish momentum. The Dow Jones Industrial Average fell into negative territory in the last hour and the S&P 500 was flat on the day at 3,735.
Supported by risk flows, the JPY gained strength as a safe haven. Meanwhile, the US Dollar Index remains deep in negative territory near 90.00 despite the bad mood of the market and does not allow the USD / JPY to rebound.
However, light holiday trading is likely to force USD / JPY to fluctuate in a tight range ahead of the New Year. On Wednesday, data on pending home sales and the balance of trade in goods will be placed on the US economic agenda, but are not expected to provoke a noticeable reaction in the market.
Technical levels
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