USD/JPY has found acceptance above the 50-hour moving average, which seems to have bottomed out (shed bearish bias).
Also, the hourly chart shows a falling channel breakout.
The data released earlier todays was dollar supportive. US retail sales rose for second month. Further, the 10-year treasury yield is up three basis points.
The pair, therefore, looks set for a rise to 108.80. The spot is currently trading at 108.46. Further gains, however, are ruled out for now due to following reasons.
To start with China data was anything but encouraging with the industrial production hitting 17-month low. The slowdown in China’s economy will embolden Trump to keep pushing tariffs button in the ongoing trade war with China.
Asian stocks, therefore, are expected to trade on the defensive on Monday. Further, caution ahead of the Fed meeting will likely cap gains in the US dollar.
It is worth noting that markets are priced for three rate cuts in 2019 and are expecting the Fed to cut rates by 25 basis points in July.
Also, the hourly chart shows a falling channel breakout.
The data released earlier todays was dollar supportive. US retail sales rose for second month. Further, the 10-year treasury yield is up three basis points.
The pair, therefore, looks set for a rise to 108.80. The spot is currently trading at 108.46. Further gains, however, are ruled out for now due to following reasons.
To start with China data was anything but encouraging with the industrial production hitting 17-month low. The slowdown in China’s economy will embolden Trump to keep pushing tariffs button in the ongoing trade war with China.
Asian stocks, therefore, are expected to trade on the defensive on Monday. Further, caution ahead of the Fed meeting will likely cap gains in the US dollar.
It is worth noting that markets are priced for three rate cuts in 2019 and are expecting the Fed to cut rates by 25 basis points in July.