USD/JPY posts small gains as optimism continues to fade

USD/JPY retains its neutral stance as the pair keeps trading in well-limited intraday ranges, now in the 107.10 area, still depending on the market’s sentiment, FXStreet’s Chief Analyst Valeria Bednarik briefs.

Key quotes

“The ECB will probably be a non-event, as policymakers are expected to maintain rates and the PEPP unchanged. The focus will be on comments from President Lagarde, who will probably focus on the rescue fund that EU countries are yet to agree on. As for the US, the country will publish June Retail Sales, foreseen up by 5% after adding 17.7% in the previous month.”

“In the 4 hours chart, the USD/JPY pair is hovering around a directionless 20 SMA, while the larger ones also lack strength, a handful of pips above the current level. Technical indicators, in the meantime, recovered from intraday lows, but lost directional momentum around their midlines.”