FxWirePro: USD/JPY rangebound, markets cautious ahead of Yellen's speech
USD/JPY has been consistently making new daily highs, bouncing off from 110.67 lows. But a mixed outlook in respect to the US economy on the back of mixed PCE result and hawkish comments from the various Fed members spea…
USD/JPY has been consistently making new daily highs, bouncing off from 110.67 lows.
But a mixed outlook in respect to the US economy on the back of mixed PCE result and hawkish comments from the various Fed members speaking last week after a dovish FOMC tone likely to keep upside capped.
Markets also await Yellen speaking later today in New York session. Yellen is expected to reinforce a message of caution.
In the week to 22 March, there was a marginal rise in overall net long USD positions, while speculators continue to play Yen shorts.
From the fundamental side, NTT Data Corp., a unit of Japan’s former telephone monopoly, agreed to buy Dell Inc.’s IT services businesses for $3.06bn as it expands sales outside Japan.
The acquisition would increase NTT Data’s access to the US and other foreign markets to counter sluggish economic growth at home.
USD/JPY finds immediate support at 113.05 (5-DMA), while 113.68 (March 28th highs) is immediate resistance.
Daily Techs are biased higher but longer term trend in the pair is lower. Price action is well below the daily cloud and 200-DMA.
Hawkish comments from Yellen could see tests of 114.50 levels, a dovish tone could see a reversal to 112.20
