USD/JPY fluctuating in tight range above 110.50 ahead of US PMI data
- USD/JPY is moving sideways at the start of the week.
- 10-year US T-bond yield is edging higher on Monday.
- US Dollar Index stays calm around 93.00 ahead of PMI data.
The USD/JPY pair is having a difficult time finding direction on Monday and was last seen posting small daily losses at 110.57.
USD/JPY consolidates last week's rally
Last week, USD/JPY touched its highest level in a year at 110.97 and gained more than 100 pips to close at 110.70. The risk-positive market environment didn't allow the pair to take advantage of the broad-based USD weakness.
On Friday, the data published by the US Bureau of Labor Statistics revealed that Nonfarm Payrolls in March rose by 916,000. Although the market reaction was largely muted due to the Easter holiday, the upbeat jobs report seems to be helping risk flows to remain in control of financial markets with the S&P 500 Futures rising more than 0.5%.
In the meantime, the benchmark 10-year US T-bond yield is staying below the key 1.75% mark on Monday, keeping the USD's gains limited for the time being.
Later in the session, the IHS Markit and the ISM will be both releasing March Services PMI reports. The ISM-NY Business Conditions Index and February Factory Orders will be featured in the US economic docket as well. Ahead of these data, the US Dollar Index is virtually unchanged on the day at 93.02.
Technical levels to watch for