- USD/JPY continues to push higher after closing above 110.00 on Monday.
- US Dollar Index fluctuates around 92.00 on Tuesday.
- Eyes on FOMC Chairman Jerome Powell's testimony at 1800 GMT.
After staying relatively quiet in a tight range above 100.00 during the first half of the day on Tuesday, the USD/JPY pair gained traction and reached a fresh daily high of 110.75. As of writing, the pair was up 0.4% on a daily basis at 110.73.
DXY clings to daily gains near 92.00
Although the greenback struggled to find demand on Monday, the late rebound witnessed in the US Treasury bond yield provided a boost to USD/JPY and helped it stage a sharp U-turn during the American session.
On Tuesday, the renewed USD strength is allowing USD/JPY to preserve its bullish momentum. The US Dollar Index is currently rising 0.18% on the day at 92.02. Later in the session, FOMC Chairman Jerome Powell will testify before the House Select Subcommittee on the Coronavirus Crisis at 1800 GMT.
The data from the US revealed on Tuesday that Existing Home Sales declined by 0.9% in May and the Richmond Fed Manufacturing Index improved modestly to 22 in June from 18 in May.
In the early trading hours of the Asian session on Wednesday, the Bank of Japan will release the June Monetary Policy Meeting Minutes. Jibun Bank Manufacturing PMI data will be featured in the Japanese economic docket as well.
Assessing the BoJ's policy outlook, "we keep our view for the BoJ to do more and enhance its monetary policy easing further and we are also cognizant that market expectations are now tilted to the BoJ having reached the limits of its monetary policy and will remain in a holding pattern on policy until at least April 2023 when Governor Kuroda is scheduled to leave the BOJ," said Calvin Liew, Senior Economist at UOB Group.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.