USDJPY was moving upward since last Friday within the uptrend channel (the brown color channel line). At 7:00 GMT, (point A) USDJPY was a top of the channel and met resistance of the downtrend line formed since March 5. Point A is also at the 61.8% fibo expansion of swing low (i) to swing high (ii). From point A with a reversal candle of dark cloud cover, USDJPY moved sideway from the opening of European session up to noon in US session.
Better-than-expected European PMI data are not helping the euro make new gains against the U.S. dollar and Yen on Tuesday during the European and US session. The European stock markets was higher at the opening session as Asian stock market closed in the positive territory but towards the closing European stocks were lower than their opening prices. In US, stock market was at negative territory during the morning session but recovered at lunch time.
The poor sentiment of stock market was reflected in the weakness of Euros against the US Dollar and the Yen. During the Euros weakness, USDJPY has no bearing and progress sideway. The consolidating USDJPY continued during early US session despite weakness in US stock market. From the opening of European session up to the morning US session, USDJPY was bouncing between 98.00 to 98.30.
