USD/JPY fades a spike to 120.50, back to square one
By FXStreet FXStreet (Mumbai) – The USD/JPY pair fell back in the red zone in the mid-Asian hours, after attempting a brief recovery towards 120.50 levels, as the JPY bulls retain control on the back of falling major Asian indices.
USD/JPY capped below 120.50
Currently, the USD/JPY pair trades -0.14% lower at 120.32, back near session lows struck at 120.25 at Tokyo open. The major consolidates above the key hourly 200-MA as a slightly negative risk sentiment amid falling stocks on the Japanese and China’s bourses continue to boost the safe-haven bids for the yen.
The USD/JPY pair remains pressured as markets resort to profit-taking on their USD longs ahead of the Fed’s closely watched PCE price index due later tonight, which may have major impact on the Fed’s interest rate outlook, thus on the USD.
On the Friday, USD/JPY was bolstered to fresh two-week highs at 120.26 levels after the US Q2 final GDP figures stood at 3.9% vs. 3.7% expected, adding further to the hawkish Yellen’s comments-inspired rally.
Meanwhile, markets look poised for the NFP-week ahead with major macro data from the US and Japan to dominate the moves on the pair. While Fed policymakers’ speeches will also be closely eyed for fresh …read more
Source:: FX Street
