• USD bearish pressure remains intact after mixed US data.
• Reviving safe-haven demand adds to the downward pressure.
• Bulls seemed uninspired by surging US bond yields.
The USD/JPY pair extended its modest retracement slide from weekly tops and refreshed fresh session low during the early NA session.
Renewed US Dollar weakness failed to assist the pair to build on overnight strong recovery gains from 4-month lows and prompted some fresh selling at higher levels. The bearish pressure remained unabated following today's mixed US economic releases and despite a strong follow-through upsurge in the US Treasury bond yields.
Meanwhile, reviving safe-haven demand, led by indications of a weaker opening in the US equity markets, further underpinned the Japanese Yen and collaborated to the pair slide back closer to the 111.00 handle.
With today's US economic data out of the way, broader market risk sentiment and the USD price dynamics would continue to act as key determinants of the pair's movement through rest of the trading day.
Technical outlook
Valeria Bednarik, American Chief Analyst at FXStreet writes: “Technically, the daily chart for the USD/JPY pair shows that it's still trading below its 100 and 200 DMAs, this last around 111.75, providing an immediate dynamic resistance. Shorter term, and according to the 4 hours chart, the pair keeps trading below its 100 and 200 SMAs, with the shortest accelerating below the larger one, the Momentum indicator aims to regain the upside above its 100 level, while the RSI heads marginally lower around 53, all of which suggests a limited upward potential at the time being.”
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