Market Participants Wait for US Economic Data
The USD/JPY pair had no directional bias during the early European session on Thursday. Having fluctuated between insignificant gains and equally minor losses, it stabilized around one-week high, trading above the 109.00 level.
USD/JPY did not benefit from Wednesday’s upward movement and remained within a tight range on Thursday. The US dollar was bolstered by the possibility that the FOMC could start making plans to change the pace of asset purchases, if Thursday’s economic data surpassed analysts’ expectations. Strong economic data would be the main source of the greenback’s growth.
Meanwhile, investors are exercising caution ahead of the release of the key economic data today and tomorrow. Their cautiousness gives the US dollar some strength. The sliding US Treasury bonds, however, acted as a counterforce and restrained bulls from betting on the dollar more enthusiastically. A softer tone around the US equity futures supported the Japanese yen and also limited the USD/JPY’s gains.
Thursday is a day rich with economic data. Investors are waiting for the release of the Prelim (first revision) Q1 GDP, the Initial Weekly Jobless Claims, Durable Goods Orders, and Pending Home Sales. These releases will affect the US dollar price dynamic and will act as a catalyst during the North American trading session. The US bond yields will also influence the USD/JPY pair’s trajectory, creating some lucrative opportunities for traders.
USD/JPY traded at 109.16 in the early Thursday session. The pair was last seen trading at 109.13. A price change constitutes -0.03% at the time of writing.
