USD/JPY was a contact softer amid broad USD softness and UST yields drifting decrease. Pair was final at 144.20 ranges, OCBC’s FX analysts Frances Cheung and Christopher Wong be aware.
Dangers stay skewed to the draw back
“Key danger to observe in coming days – commerce negotiation with US. Japan’s high negotiator Ryosei Akazawa was in Washington DC final week for the 7-th spherical of commerce negotiations, in hopes of ironing out a deal earlier than 9 July deadline. Japan stated that Akazawa and Lutnick had a ‘fruitful’ dialogue and agreed to proceed in search of a deal that’s helpful to each US and Japan.”
“In a separate interview in a single day, Trump labelled the commerce in vehicles between US and Japan as unfair, however he additionally stated that Japan can take oil from US and ‘quite a lot of different issues’.”
“Bullish momentum on every day chart is fading whereas RSI continues to fall. Dangers stay skewed to the draw back. Help subsequent at 144, 142.50 ranges. Resistance 144.40/50 ranges (23.6% fibo, 21, 50 DMAs), 146.40 (100 DMA) and 147.15 (38.2% fibo retracement of 2025 excessive to low.”
