The move in USD/JPY speaks for itself here and while the dollar was a little higher earlier, we are seeing things keep more flattish on the day now. This comes as S&P 500 futures pare losses to be flat while bond yields are also seeing a bit of a pull back with 2-year Treasury yields down 1 bps to 4.60%. 10-year yields are still up 1.6 bps to 4.24% but off earlier highs around 4.27%.
There's just some slight pushing and pulling but the dollar is keeping steadier overall. Let's take a look at the technicals.
EUR/USD is caught in a bit of a wedge in the bigger picture but the near-term chart highlights that price action is still caught in between its 100 (red line) and 200-hour (blue line) moving averages. The latter is still helping to limit any downside push and there are also large option expiries layered in and around the current spot price to provide some additional areas for traders to lean on.
The wedge (white lines) remains the key technical consideration though in my view and that will be challenged as we look towards the ECB and Fed policy meetings over the coming two weeks.
Meanwhile, GBP/USD threatened a push below its key hourly moving averages before buyers are seen holding their line a fair bit on the session today:
The 200-hour moving average (blue line) at 1.1208 is the key point of contention here with daily resistance from the key trendline (white line) is also helping to limit gains in the bigger picture.
Commodity currencies are little changed against the greenback now but AUD/USD is still under pressure after yesterday's rebound failed to really amount to anything once again:
The key hourly moving averages at 0.6278-85 is the area to watch and a hold below keeps sellers in control of the near-term bias in the pair. The 0.6200 level remains the key downside support level to watch though while topside remains more limited around 0.6240-45 for the most part.
