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The USD is higher to start the NA session. How are the charts impacting trader bias?

The article says the USD is firmer at the start of the North American session, retracing part of yesterday’s decline after suspected intervention in USD/JPY triggered a sharp yen rally. The focus is on technical levels in EUR/USD, USD/JPY, and GBP/USD, with USD/JPY highlighted as the most important driver. The Bank of Japan left rates unchanged at 1.00%, reinforcing the interest-rate differential that still supports the carry trade and limiting the durability of yen strength unless BOJ tightening accelerates or U.S. yields fall. U.S. yields are higher across the curve, while equities are modestly higher. Overall, the piece suggests intervention can create short-term volatility, but monetary policy and yield spreads remain the main longer-term forces for the dollar/yen pair.

Category

EUR/USD

Sentiment

Mixed

Event

Technical analysis

Reading time

1 min