- Japanese markets are off due to the Marine Day Holiday.
- Risk sentiment remains light after China’s data dump provided signs of improvement in the world’s second-largest economy.
- Trade headlines also refrain from being much negative while the absence of catalysts confines USD/JPY momentum.
Given the off at the Japanese markets, coupled with China’s upbeat data dump, the USD/JPY pair is taking the bids near 108.10 heading into the European open on Monday.
Japan’s financial markets are shut due to Marine Day Holiday while China released June month Retail Sales and Industrial Production, coupled with a second quarter (Q2) Gross Domestic Product (GDP) during the early Asian session.
Out of China’s data dump, the yearly growth figures of GDP matched 6.2% forecasts while the rest of the statistics rose beyond market consensus and triggered expectations of recovery in the world’s second-largest economy.
Adding to the market optimism could be the absence of red signals from either the US-China trade front or the US Federal Reserve that has been dragging the pair downwards recently.
Global risk gauge, the US 10-year treasury yields take the rounds to a month’s high while flashing 2.124% mark.
While trade/political headlines will keep dominating near-term market sentiment amid lack of fresh data/events on the economic calendar, the US monthly manufacturing index from NY Empire State for June will also be on traders’ radar for fresh directives.
June 21 high around 107.74 offers immediate support to the pair ahead of highlighting 107.10 and recent lows surrounding 106.78. On the flip side, 21-day exponential moving average (EMA) level of 108.25 and the monthly top close to 109.00 may keep limiting the pair’s near-term upside.