USD/JPY Forecast: Mildly bearish amid risk-off
|USD/JPY Current price: 107.41
- US Treasury yields nearing record lows as the market’s sentiment deteriorates.
- Falling crude oil prices remain as the main driver this Tuesday.
- USD/JPY with increased bearish potential, support at 107.30.
The market is on risk-off mood this Tuesday, leading to some modest JPY gains. The American dollar rallies against most of its other rivals, as global equities trade in the red. Treasury yields also moved lower with that of the 10-year note currently at 0.57%. The catalyst for the latest round of negative sentiment was crude oil, as the barrel of WTI plunged into negative levels on Monday, a historical event, as a result of excessive supply and a world without demand.
Japan didn’t release relevant data this Tuesday, and the US calendar will be scarce, as the country will release March Existing Home Sales, foreseen down by 8.1%.
USD/JPY short-term technical outlook
The USD/JPY pair is trading around 107.40, bearish-to-neutral in the short-term, as it’s slowly extending its decline below the 38.2% retracement of its March advance at 107.70. In the 4-hour chart, moving averages are confined to a tight range, directionless, just above the mentioned Fibonacci level. Technical indicators, in the meantime, remain flat within negative levels, skewing the risk to the downside without confirming further declines ahead.
Support levels: 107.30 106.95 106.50
Resistance levels: 107.70 108.10 108.50
View Live Chart for the USD/JPY
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