USD/JPY looks to end day near 107.70 with small gains

  • USD/JPY pair is trading in a 15-pip range on Monday.
  • US financial markets are closed due to Memorial Day holiday.
  • All Industry Index from Japan will be looked upon for fresh impetus.

The USD/JPY pair is fluctuating in an extremely tight 15-pip range on Monday as US investors enjoy a long-weekend in observance of Memorial Day. As of writing, the pair was up 0.1% on a daily basis at 107.72.

JPY ignores Japan’s victory against coronavirus

Earlier in the day, Japanese Prime Minister (PM) Shinzo Abe announced that Japan will be lifting the state of emergency as of Monday. “Japan has managed to bring the epidemic under control,” Abe added. “The exit from the pandemic is in sight.” Nevertheless, this announcement had little to no impact on the JPY’s performance against its rivals.

Meanwhile, the data from Japan revealed that the Leading Economic Index in March recovered modestly to 84.7 in March from 83.8.

Although major European equity indexes closed the day decisively higher to reflect an upbeat market mood, USD/JPY remained directionless amid thin trading conditions. Moreover, the US Dollar Index stayed flat near 99.80 throughout the day as investors showed no interest in the greenback.

During the early trading hours of the Asian session on Tuesday, Corporate Service Price Index and All Industry Activity Index data from Japan will be watched by the market participants. Later in the day, the Chicago Fed National Activity Index, New Home Sales and Conference Board’s Consumer Confidence Index data will be featured in the US economic docket.

Technical levels to watch for

Posted in FX