USD/JPY daily chart
Yesterday in European trading, the pair found itself here just below the 157 mark. Before that, the reaction to US data helped push the pair higher above the single-digit level. And that brings us to the present. Price action is now finding a new level to stabilize just below the 158 mark. It’s a similar story as bears are slowly trying to push the limits, but not too much to prompt Japan to step in. new.
But for today, we still have a few key risk events to manage. US data will come back into focus and we have a number of them on the agenda. There is ADP job change, ISM manufacturing PMI and JOLTS job postings on the data register. And after that, there is the FOMC meeting decision and Powell’s press conference.
Presumably Japanese officials are also watching all this closely, gauging the USD/JPY reaction before perhaps having to react.
But for now, cautious tones once again prevail as dip buyers wait for the right moment to pounce further. And they hope that American data will later give them a reason to do so.
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