USD/JPY: Market stays away from the greenback

The USD/JPY pair trades marginally higher for the day, ranging around the 107.50 Fibonacci level as optimism on economic growth is leading the markets today, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“Safe-haven assets are under pressure, with the dollar being the worst performer, although adding some ground against the Japanese yen. There was no particular catalyst behind the upbeat mood, but optimism from Chinese authorities about an economic rebound, given the latest macroeconomic figures.”

“The continuation of the ongoing upbeat sentiment will depend on US data to be out later today. The country will publish today the official ISM Non-Manufacturing PMI, foreseen in June at 50 from 45.4 in the previous month.”

“A neutral stance persists in the short-term and according to the 4-hour chart, although the bearish potential seems limited. The USD/JPY pair is battling with a directionless 200 SMA, while above the shorter ones. Technical indicators, in the meantime, head nowhere just above their midlines.”