USDJPY Holds Near 160 as Japan 10-Year JGB Yields Exceed 1.3%, a 40-Year High

May ISM services index 54.5 vs 53.8 expected US May ADP employment data +122K vs +117K expected Iran foreign minister: Contact with the US has not been severed but no progress made Iran targeted a US military ship in the Gulf of Oman - report Fed's Beige Book continues to see slight-to-moderate US growth Geopolitical news: China, Iran, NATO, and chip shortage US EIA weekly crude oil inventories -7974K vs -4007K expected Netanyahu: Lebanon has been taken over by Hezbollah Fed's Williams: I'm not that worried about persistent impacts on inflation so far US factory orders for April 4.8% versus 4.6% estimate May US S&P Global services PMI 50.7 vs 50.9 prelim Canada Q1 labour productivity falls 0.5% Markets: Gold down $41 to $4444 US 10-yuear yields up 3.4 bps to 4.49% WTI crude oil up $2.27 to $96.03 S&P 500 down 0.6% Nasdaq Comp down 0.8% USD leads, NZD lags The dollar moves were substantial on Wednesday in a worrisome sign of geopolitical risk as oil rose another 2.5%. The reports of an imminent deal between the US and Iran have dried up and there's a sense we are at a turning point in the war as patience wears thin. In particular focus is USD/JPY as it rose above 160.00 and into the range where Japan will be tempted to intervene. Elsewhere, oil prices chopped around and hit $97 before fading to $94.40 and then rising back to $96.17.The bond market has started to notice rising oil as yields ticked higher. Outside of Iran-driven news, the AI trade showed a bit less resilience than usual. There were some attempts to drag stock markets higher but it was Nvidia that struggled, falling 3.6% in a continuation of yesterday's reversal. We also saw a big swing lower in software stocks, where were a main catalyst in the May rally. The IGV software ETF was down 4.3%. Alphabet shares also fell to the lowest since April in a 0.8% decline in the fourth day of losses; Microsoft was down 3.2%. On the flipside, Meta was up 4.2% on upgrades. The meme-like rally in MRVL after Jensen

USDJPY hit important 160 resistance but stays below this level for the second consecutive day, as traders remain very cautious after the previous intervention commenced at this zone and Japan’s officials repeated today their readiness to intervene again. The notion is supported by today’s comments from BoJ’s Governor who highlighted an increased inflationary risk from […] The post USDJPY Cracks 160 Barrier, Traders Cautious of Potential Intervention appeared first on ActionForex.

Intraday bias in USD/JPY is turned neutral with current retreat. On the upside, above 159.99 will resume the rally from 155.01. Strong resistance should be seen from 160.71 high to limit upside. On the downside, break of 159.08 minor support will turn bias back to the downside for 55 D EMA (now at 158.46) and […] The post USD/JPY Daily Outlook appeared first on ActionForex.

Headlines: US president Trump reaffirms that Iran has agreed to not have a nuclear weapon Iran reserves right to defend against any country permitting US attacks EU says latest US tariffs on forced labour grounds are unjustified USD/JPY continues to poke and prod at intervention strike zone BOJ governor Ueda says will continue to raise policy rate if baseline outlook holds ECB policymaker Elderson says prolonged war increases likelihood of second-round effects SNB Chairman Schlegel says medium-term inflation pressure is basically unchanged Eurozone business activity struggles further in May amid surging price pressures UK May final services PMI 49.3 vs 47.9 prelim How likely is a U.S. debt crisis? Markets: WTI crude up 2% to $95.70 European indices lower, DAX down 0.9% while CAC 40 down 0.4% S&P 500 futures down 0.1% USD a little higher, USD/JPY volatility swings after nearing 160 US 10-year yields up 2.8 bps to 4.48% Gold down 0.5% to $4,463 It was a more pensive session as we continue to wait on whether or not the US and Iran will strike a deal this week. But by the look of things, it seems that both sides are still finding it hard to meet in the middle especially on key terms. US president Trump came out to reaffirm that Iran has agreed to not have a nuclear weapon. But as a reminder, this notion of a baseline promise was denied by Tehran previously last week already. Besides that, he also said that the US naval blockade may stay the course until Labour Day. If so, that means it will be another three more months of this with the naval blockade being lifted supposed to be a key condition for Iran in this framework agreement. So, make what you will of that. Markets remain unfazed for the most part despite the mix of headlines. However, oil prices are continuing to push up with WTI crude up 2% to $95.70 on the day. In the equities space, we are seeing a more tepid mood with European indices falling off while US futures are sitting marginally lower on the day. Ge

Intraday bias in EUR/JPY is turned neutral first with current retreat. Further rise is expected as long as 184.42 support holds. Above 186.18 will extend the rebound from 182.01. Firm break of 61.8% projection of 182.01 to 185.44 from 184.42 at 186.53 will pave the way to 100% projection at 187.85. In the bigger picture, […] The post EUR/JPY Daily Outlook appeared first on ActionForex.

The Japanese Yen bounced slightly briefly after fresh intervention warnings from Tokyo, but the market’s overall message appears unchanged: traders are still eyeing another test of the 160 level. After USD/JPY flirted with the intervention red line earlier in the day, comments from Prime Minister Sanae Takaichi and Finance Minister Satsuki Katayama helped trigger a […] The post Market Heard Japan’s Intervention Warning. But USD/JPY 160 Test Still Alive. appeared first on ActionForex.