It's a quiet one on the FX front as we look to the session ahead. Most dollar pairs are holding within less than 10 pips change and at most less than 15 pips change on the day thus far. The less than 20 pips range for EUR/USD exemplifies the lack of interest to start the day and there might not be all too much to work with when we get to European trading later.
The standout mover to start the week remains the Japanese yen, following Sanae Takaichi's win to become prime minister. As mentioned before, she is a big fiscal dove and that's leading to a weaker currency as traders pare bets on a BOJ rate hike by year-end.
USD/JPY is holding above the 150.00 mark and that's a big win for buyers in marking a daily close above that yesterday. That being said, we've been in this situation before.
At the end of July, the pair closed higher at 150.72 before falling back the next day below the 150.00 mark and back into the previous consolidation range. On the week itself, the 100-week moving average at 149.65 remains the key line in the sand. But if buyers can keep a break above 150.00 in the coming days, it will breathe confidence to open up the next leg higher for the pair. That at least from a technical perspective.
Besides that, other major currencies are not up to much to start the week. The dollar gained some ground in European trading yesterday but lost most of that in US trading after. The euro was roughed up by French political concerns but EUR/USD is still keeping thereabouts near 1.1700 as we look to the new day.
