Its another day of consolidation from the 22 December USDJPY Fundamental Outlook as pair consolidates in sync with Treasury yields. Also, markets are focused on the US macro releases.
22 December, GKFX– The USD/JPY pair stalled its overnight decline and now consolidates the retreat from six-day tops of 113.63 amid a lack of fresh catalysts and subdued trading activity.
- Unperturbed by firmer DXY, Japanese budget.
- Tracks USTs ahead of the US macro releases.
- Pre-Christmas light trading to persist.
22 December USDJPY Fundamental Outlook
The spot trades in a 10-pips extremely narrow range so far this session, as the rates closely track the downside consolidative phase seen in 10-year Treasury yields, after the longer duration US rates ran into resistances once again near 2.50% – key level.
Meanwhile, the pair paid no head to the Japanese Cabinet FY 2018/19 budget announcement, while the renewed strength seen in the US dollar against its main peers, driven by the Catalan election outcome–backed sell-off in EUR/USD, also failed to lift the sentiment around the major.
Attention now turns towards another batch of critical US macro releases, including the durables goods, Core PCE price index, new home sales, and revised consumer sentiment, for fresh impetus. Yesterday’s mixed US data, with the Q3 downward revision and better Philly Fed manufacturing gauge, kept the up move contained.
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