USD/JPY is trading around 112.40, unchanged from yesterday’s closing price. The pair has been moving all day sideways.
On Asian hours, it peaked at 112.66 and pulled back. Since then it has been unable to trade above 112.60. It bottomed recently at 112.09 but quickly rose back to the 112.40 area.
Today’s stabilization follows two days with declines. Since Janet Yellen dovish comments on Tuesday, USD/JPY has fallen more than a hundred pips. So far on Thursday’s it has remained within yesterday’s price range. Caution prevails among traders ahead of Friday’s NFP report.
Weekly chart also shows range
On a wider perspective USD/JPY also continues to move in ranges, holding above 111.00 and below 114.00. The trend still favors the Japanese currency but after the sharp decline that took place during February, USD managed to stabilize.
According to analysts from The Bank of Tokyo-Mitsubishi UFJ the short-term outlook is neutral, within a price range of 110.50 and 114.00. They point out that the strength of the yen is proving to be resilient.
(Market News Provided by FXstreet)