Into the end of week, several markets such as USD/JPY, the S&P 500, and US 10y yields are ranging just beneath important topside areas. Of these, 100 in USD/JPY and 1600 in the S&P 500 are in striking distance. In the absence of a decisive break through these levels, we expect further consolidation especially given the upcoming Golden Week in Japan. Lower US 10y yields (trading beneath support at 1.81%) are potentially aiding a small offer for the USD for the time being though overall, a lack of conviction plagues markets. As highlighted in recent publications (Daily FX Technical Analysis and Strategy -Temporary risk reprieve), USD bearish moves continue to be best placed against the pound in the short term.
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Barclays