XM does not provide services to residents of the United States of America.

USD/JPY resists gravitational pull from US yields

<html xmlns="http://www.w3.org/1999/xhtml"><head><title>BUZZ-COMMENT-USD/JPY resists gravitational pull from US yields</title></head><body>

June 18 (Reuters) -USD/JPY traded modestly firmer during Tuesday’s session but stopped short of hitting its post-BoJ high at 158.26, with mixed signals emerging from U.S. data and risk sentiment.

Despite softer than expected U.S. retail sales data prompting a pullback through 158, dips remain shallow in the pair. This will likely persist as long as U.S. stocks continue to print fresh record highs.

As a result of the drift higher in stocks, USD/JPY has resisted the gravitational pull from U.S. yields, which is somewhat of a concern for the dollar. For USD/JPY, the direction of Treasury yields likely suggests that upside in the pair may be harder to come by going forward.

That said, unless equities take a turn lower with Treasury yields, the path of least resistance remains on the topside for USD/JPY, particularly as the VIX continues to bobble around the lows.

In any case, a better expression of playing yen upside is likely against the euro in the lead up to the first round of the French parliamentary elections on June 30.

For more click on FXBUZ

USDJPY vs spx and us 10 https://tmsnrt.rs/3KL0G9r

(Justin McQueen is a Reuters market analyst. The views expressed are his own.)


Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.