USD/JPY eases from 2-month tops

16 October, 2019

Fading safe-haven demand continued weighing on the JPY and provided a goodish lift on Tuesday. The ongoing slide in the US bond yields undermined the USD and kept a lid on any further move up.

The USD/JPY pair edged lower through the Asian session on Wednesday and eroded a part of the previous session's goodish move up to over two-month tops.
 
The pair on Tuesday rallied around 75 pips intraday and was being supported by improving risk sentiment. Against the backdrop of a partial US-China trade deal, growing optimism over an orderly Brexit boosted investors' appetite for riskier assets and weighed on the Japanese Yen's perceived safe-haven status.

Weighed Down By Weaker US Bond Yields/USD


The positive momentum seemed rather unaffected by a turnaround in the US Dollar, primarily on the back of a strong rally in the British Pound. This coupled with the ongoing slide in the US Treasury bond yields undermined demand for the Greenback on Wednesday and seemed to exert some downward pressure.
 
Meanwhile, given the overnight breakthrough the 108.45-50 supply zone, the downtick is likely to remain limited, rather is more likely to be seen as a buying opportunity for an eventual move beyond the 109.00 round figure mark as market participants look forward to the US macro data for a fresh impetus.
 
Wednesday's US economic docket highlights the release of monthly retail sales data for September, which will influence the USD price dynamics later during the early North-American session. This coupled with the broader market risk sentiment might further contribute towards producing some short-term trading opportunities.


Source  
What will move Euro out of ECB rate decision?

This is the last policy announcement from the ECB before President Mario Draghi makes way for his replacement...

Gold drops to fresh session lows

Fails to capitalize on last week's goodish bounce, despite a subdued USD demand. A goodish bounce in US bond yields/risk-on mood prompts some fresh selling...

Gold to retest trend channel resistance

The precious metal's corrective slide on Friday, from near six month tops, stalled ahead of an important confluence resistance break-point now turned support...


Gold looks to $1210 ahead of US data

Stalled US dollar bounce combined with negative European equities, Treasury yields underpin. Volatile within $ 5 range ahead of the US core PCE data...

Gold and oil shorts covered

According to the CFTC Weekly Report (W/E July 10), as the WTI crude oil spiked toward $75/bbl amid fears of supply shortages and low spare capacity, which...

Global markets in a delicate spot

Analysts at Westpac, suggest that global markets remain in a delicate spot due to ongoing uncertainty of the US/China trade saga and growing geopolitical tensions...


Powell to stick to gradual path

Analysts at Deutsche Bank suggest that new Fed Chair Powell’s testimony is at 3pm GMT and he will be speaking on behalf of the FOMC...

GBP futures: bottomed out?

In light of advanced figures for GBP futures markets, open interest decreased by almost 5K contracts on Friday vs. Thursday's 209,855 contracts...

Strong market sentiment continues

Chief Analyst, Allan von Mehren at Danske Bank suggests that global market sentiment continues to be strong with further decent increases in stock...