USD/JPY Pulled Back Towards The 133 Level

Key Insights

• U.S. dollar is losing ground against a broad basket of currencies. 
• USD/JPY declined as traders took profits after the recent rebound. 
• GBP/USD pulled back below 1.2050.

U.S. Dollar Is Under Pressure

U.S. Dollar Index has recently made another attempt to settle below the 104 level and is trying to develop additional downside momentum.

Today, traders had a chance to take a look at the Initial Jobelss Claims report. The report indicated that 225,000 Americans filed for unemployment benefits in a week, in line with the analyst consensus.

The yield of 10-year Treasuries declined towards 3.95% after an unsuccessful attempt to settle above the 4.00% level, which was bearish for the U.S. dollar.

EUR/USD Continues Its Attempts To Settle Above 1.0660

EUR/USD has recently made another attempt to settle above the resistance at 1.0660 but failed to develop sufficient upside momentum and pulled back.

From a big picture point of view, EUR/USD continues to trade in the 1.0600 – 1.0660 range, and it looks that forex traders are not ready for big moves in the final days of 2022.

GBP/USD Faced Resistance At The 20 EMA

GBP/USD faced resistance at the 20 EMA at 1.2080 and pulled back towards 1.2030.

As in the EUR/USD case, GBP/USD lacks catalysts for a sustainable move. Tomorrow, UK will release Nationwide Housing Prices report, which is expected to indicate that housing prices declined by 0.7% month-over-month in December. It remains to be seen whether the market will react to the housing data in the final trading day of the year.

AUD/USD Tries To Settle Above The 0.6750 Level

AUD/USD received support near the 20 EMA at 0.6720 and is trying to settle back above the 0.6750 level. It looks that AUD/USD is trying to develop a sustainable upside trend, but the recent volatility in commodity markets scares bulls.

Other commodity-related currencies are also moving higher in today’s trading session. NZD/USD is heading towards the 0.6350 level, while USD/CAD pulled back below 1.3550.

USD/JPY Retreats As Traders Take Profits After The Recent Rebound

USD/JPY failed to settle above the 134.50 level and pulled back towards 133. In the near term, USD/JPY will remain sensitive to any comments on monetary policy from the BoJ.

For a look at all of today’s economic events, check out our economic calendar.