- USD/JPY is under pressure after Monday’s high near 133.00.
- US yields are trading mixed in anticipation of Powell.
- The Fed’s Powell will speak later in the American session.
He USD/JPY is under moderate downward pressure and tests the area below 132.00 on Tuesday’s reversal.
USD/JPY with focus on Powell
USD/JPY bullish momentum moderated at 133.00 earlier in the week as the NFP-induced bounce appears to have lost some momentum.
The resurgence in cash selling pressure on Tuesday comes amid picking up in risk-off sentiment, which is finally supporting demand for the Japanese safe haven.
In addition, the mixed behavior of US yields causes the short end of the curve to give up some of the recent strong advance in the face of additional gains in the belly and long end. In the Japanese debt market, JGB yields fall modestly below the 0.50% level.
Regarding the data in Japan, household spending fell 1.3% through December, while the coincident index and the leading economic index for the same month stood at 98.9 and 97.2, respectively.
Later in the American session, Powell will participate in a debate at the Economic Club of Washington.
technical levels
At time of writing, the pair is down 0.50% at 131.95 and a break below 128.08 (2 Feb monthly low) would target 127.21 (16 Jan low) and finally 126.36 (16 Jan low). monthly of May 24, 2022). To the upside, the immediate hurdle lies at 132.90 (Feb 6 monthly high), followed by 134.77 (Jan 6 high) and 136.78 (200-day SMA).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
