Free Trial

USD/JPY Rally Stops Short of 50-dma

FOREX

JPY traded poorly throughout the Tuesday session, prompting new multi-week highs in USD/JPY as equities persistently pushed higher. New alltime highs were hit in US S&P futures ahead of the NY open, although prices moderated throughout US hours. This was mirrored in USD/JPY, which stopped short of breaking above the Y106.58 50-dma, which remains first resistance. Markets read positively into the meeting of Chinese and US negotiators, as both sides re-committed to the phase one trade deal struck in January.

GBP, CHF outperformed, but recent ranges were respected as both currencies recovered from losses posted at the tail-end of last week.

The greenback was mixed-to-lower, but generally muted newflow and volumes contained prices well as the USD index remains short of the early August highs. Reflecting the minimal moves in spot prices, implied vols in the front-end inched lower for most DM, EM FX.

Focus Wednesday turns to prelim US durable goods data for July, as well as Mexican GDP and South African CPI figures. ECB's Kazimir & Schnabel, BoC's Wilkins, Fed's Barkin and BoE's Haldane are all due to speak.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.