USD/JPY Forecast: Market keeps ignoring safe havens
|USD/JPY Current Price: 107.61
- Japanese Consumer Confidence Index seen contracting in May to 12.8 from 21.6.
- Tokyo inflation expected to have fallen into negative ground in May.
- USD/JPY with no aims of leaving its latest range, downside still limited.
There was no progress around USD/JPY that continues to trade within a well-limited level. For over two weeks now, the pair has been between 107.30 and 108.10, trapped within the seesawing market’s sentiment. Despite mounting hopes related to economic reopenings and a pick up in growth in the near future, investors hold back on the escalating tension between the US and China. Demand for safe-haven assets is on pause, and so is the pair.
Japan will publish this Friday Tokyo inflation, with the annual CPI ex fresh food seen in May falling to -0.2%. The country will also unveil Retail Trade and Industrial Production data for April, foreseen contracting sharply amid the coronavirus pandemic, and housing data for the same month. The Consumer Confidence Index, expected at 12.8 in May from 21.6 in April.
USD/JPY short-term technical outlook
The USD/JPY pair maintains its neutral stance in the short-term, with no relevant changes from the previous updates. It continues to hover around a directionless 20 SMA while above the larger ones, with the 100 SMA about to cross above the 200 SMA, skewing the risk to the upside. Technical indicators, in the meantime, remain around their midlines, lacking clear directional strength.
Support levels: 107.30 106.90 106.65
Resistance levels: 108.10 108.45 108.80
View Live Chart for the USD/JPY
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