USD/JPY is still doing its thing as buyers are gradually pushing the limit above 155.00 ahead of the BOJ tomorrow. The pair is up 0.2% to 155.63 currently, with the line in the sand starting to shift. Elsewhere, the dollar is slightly lower but nothing too outstanding so far today. GBP/USD is up 0.3% to test familiar resistance at 1.2500 though, so that is one notable technical development at least:
The pair is seeing price action keep above both the 100 (red line) and 200-hour (blue line) moving averages, reaffirming a more bullish near-term bias at least. But buyers are not exactly running away with it, with the dollar still up on the month after the early gains in the weeks before.
It is a similar case across most dollar pairs, even with EUR/USD which is up 0.2% to 1.0715 currently. USD/CAD is down marginally by 0.1% to 1.3688 while AUD/USD is up 0.2% to 0.6513 with the 200-day moving average at 0.6526 still limiting gains as seen here yesterday.
The dollar’s marginally softer showing comes despite equities being on the retreat, with tech shares lagging in particular. Meta’s earnings disappointment is renewing concerns on big tech and that is weighing on the mood. S&P 500 futures are down 0.7% while Nasdaq futures are down 1.3% currently.
In the bond market, 10-year Treasury yields are down just 0.8 bps to 4.646% – not much changed on the week.
All eyes will be on US data over the next two days. So, that will likely help set the tone for the remainder of the week alongside the BOJ tomorrow.
This article was written by Justin Low at www.forexlive.com.
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