USD/JPY stays very a lot related to the yields story for now

The pair is down once more at present by zero.three% to 154.18 presently, after having pushed simply above 155.00 early yesterday. It has been a push and pull begin to the week however that largely owes to the strikes within the bond market. 10-year Treasury yields nudged as much as round four.47% early yesterday earlier than retreating again to only beneath four.41% now. That’s pinning down USD/JPY as such to begin the week.

As seen above, the correlation continues to carry robust for the pair within the lead up and aftermath of the US election. That ties lots to the greenback momentum typically as properly.

The near-term chart means that sellers are again in management, with value motion now resting under each its 100 (purple line) and 200-hour (blue line) shifting averages. Nevertheless, it is nonetheless early within the run to persuade of a serious pullback within the pair simply but. I imply it’s a good early signal for sellers however they may want a stronger set off to get the ball rolling.

With little when it comes to US knowledge to behave as catalysts this week, it could possibly be a troublesome one to determine at the least in the meanwhile. The post-election momentum within the greenback has now clearly stalled. However to say that we will see a notable pullback continues to be depending on the technical image throughout a number of greenback pairs.

And we’re not fairly there but, particularly within the likes of EUR/USD, GBP/USD, and AUD/USD. Value motion is now holding in between the 100 and 200-hour shifting averages respectively for all these three pairs. So, the near-term value bias is extra impartial for now.

Going again to USD/JPY, all eyes will keep on the bond market in the meanwhile. That can decide the extent of any pullback within the pair. As for draw back ranges, there may be potential for a stronger corrective transfer. The 200-day shifting common is just seen at 151.85 with the 23.6 Fib retracement stage of the swing larger for the reason that finish of September solely seen at 152.69.

This text was written by Justin Low at www.ubaidahsan.com.



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