USD/JPY PRICE OUTLOOK: USD/JPY SEARCHES FOR SUPPORT AHEAD OF FED DECISIONUSD/JPY value motion has weakened sharply on the session however is looki
USD/JPY PRICE OUTLOOK: USD/JPY SEARCHES FOR SUPPORT AHEAD OF FED DECISION
- USD/JPY value motion has weakened sharply on the session however is looking for assist
- The US Greenback stays targeted on occasion danger posed by tomorrow’s Fed price choice
- Total strong shopper confidence information may assist USD/JPY bounce off intraday lows
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US Greenback value motion is buying and selling pretty combined on the session up to now with the broader DXY Index little modified. USD/JPY is notably weaker, nonetheless, with the plunge in actual yields to new report lows weighing negatively on the main foreign money pair. This probably follows lingering market angst surrounding the delta covid variant and deteriorating outlook for long-term financial progress.
The US Greenback and actual yields may be going through downward strain on account of adjustments in positioning forward of Wednesday’s Fed price choice as effectively. That mentioned, the most recent spherical of shopper confidence information simply launched is setting the desk for high-impact occasion danger posed by the Federal Reserve tomorrow.
USD/JPY PRICE CHART: 15-MINUTE TIME FRAME (27 JULY 2021 INTRADAY)
Headline shopper confidence improved for the sixth consecutive month to 129.1 in July. This topped the market forecast of 123.9 and compares to the prior studying of 127.three in June. The current state of affairs and future expectations sub-components each ticked greater to 160.three and 108.4, respectively. In keeping with the buyer confidence report, short-term inflation expectations elevated. This had little influence on shopper buying intentions, although, with the proportion of shoppers planning to buy houses, cars, and main home equipment all rising alongside trip intentions.
Customers additionally noticed an enchancment in enterprise situations and the labor market. This all stands to drive shopper spending and financial exercise within the short-term. As such, general strong shopper confidence information may assist USD/JPY value motion discover some assist across the 109.90-level and intraday lows. The Greenback-Yen is nonetheless weak to a bearish pattern that has developed since final Friday’s peak. To not point out, within the grand scheme of issues, USD/JPY value motion probably cares extra about market sentiment, actual yields, and the end result of tomorrow’s Fed assembly than the buyer confidence index.
— Written by Wealthy Dvorak, Analyst for DailyFX.com
Join with @RichDvorakFX on Twitter for real-time market perception
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