The USD/JPY pair oscillates in a small trading range for a second straight day on Tuesday as it continues to fail to acquire any significant impetus.
The pair is affected by a number of factors and is currently trading near the 132.00 round-figure mark, almost unchanged for the day.
The US dollar is expected to benefit from a little increase in US Treasury bond yields as traders rearrange their positions in anticipation of Fed Chair Jerome Powell’s speech later in the early North American session.
At the future meetings, investors will be on the lookout for hints about the speed of Fed rate hikes.
Moving forward, the US is not expected to announce any significant market-moving economic data on Tuesday.
Thus, Powell’s speech will continue to be the center of attention. It might strengthen the dollar and give the USD/JPY pair some momentum along with the US bond yields. In addition, the general risk emotion of the market will be considered to seize transient trading opportunities around the main.
The underlying environment, on the other hand, encourages pessimistic traders and the likelihood of an extension of the recent decline from a three-decade high.
|
Daily SMA20 |
133.42 |
|
Daily SMA50 |
137.68 |
|
Daily SMA100 |
140.89 |
|
Daily SMA200 |
136.51 |
USD/JPY Technical Analysis
Because the December Tokyo CPI was higher than anticipated, the Japanese yen increased.
A breach below the low from August (130.50) on the daily chart has put the purchase side under pressure.
The 30-day moving average and the supply zone between 134.70 and 135.00 are where the most recent rebound encountered resistance.
Before they can change the short-term mood, the bulls must break through the support-turned-resistance of 133.30. A crucial floor to maintain the stability of the dollar is the psychological level of 130.00 near the bottom of the rally.
