By Randolph Donney — Jan 24 - 01:40 PM
USD/JPY fell following a fleeting rally to 131.12 on EBS after US PMI
PMI beat f/c, but remained deep in contraction range nL1N34915S
The knee-jerk PMI rally only briefly cleared the 21-DMA by 131
Session low since at 129.73 as Tsy yields and oil prices retreated
Downtrend since Oct remains intact w/o a close above the 21- & 30-DMAs
If US GDP, claims, PCE on Thur and Fri are soft, selling will increase
BoJ seen less likely to reduce its ultra-easy policies near-term
Puts more USD/JPY trading focus on Tsy yields, US data & Feb. 1 Fed
Jan's trend low, 50% of 2020-22 rise & May low are key @127.215/6.56/37
For more click on FXBUZ
Source:
Refinitiv IFR Research/Market Commentary