- USD / JPY is trading in a tight range on Monday.
- Some risk aversion continues to dominate the tone in financial markets at the beginning of the week.
- The major Wall Street indices are still on track to open negative.
Despite the renewed strength of the dollar, USD / JPY closed flat on Friday and started the new week in a calm fashion. The rise in Treasury yields is overshadowed by the yen seeking refuge, which is keeping the pair calm around 113.50.
Drop in bags
The Nikkei 225 Index lost more than 2% on Monday as investors remain increasingly concerned that the Coronavirus Omicron variant could weigh on global economic activity as it forcing tight restrictions and tightening monetary policies.
On the other hand, Japan’s parliament approved a budget of 317,000 million dollars, which will include cash payments for families with children, to support the economy. This appears to be limiting the yen’s gains despite the fact that the currency’s safe-haven status.
The US economic calendar will not have relevant publications for the rest of the day and investors will pay close attention to the performance of US stocks and the placement of debt. Currently, S&P 500 futures fall 1.75% on the day.
Technical levels
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