USD/JPY hits six-week high as positive vibes continue
|Yen weakens on positive risk outlook
The positive shift in risk appetite toward the end of last week extended into this one, though activity was muted at the start of this Easter-shortened week. USD/JPY touched the highest since March 5 in early trading but settled back to hover around the 122.0 mark for the rest of the morning.
The strong rebound in China’s new loans in March reported on Friday and strong reports from the first few banks kicking off the reporting season are both helping to underpin risk appetite. The 55-day moving average on USD/JPY looks poised to cross above the 100-day moving average for the first time since January 10.
USD/JPY Daily Chart
Source: OANDA fxTrade
US-Japan trade talks begin
With US Trade Secretary Mnuchin issuing soothing words about the progress in the US-China trade negotiations, he’s now switching his focus to Japan as trade talks begin with that nation. Reports say that the talks will focus on goods initially, though Japan also wants service items to be included.
The first shots include Mnuchin calling for a currency clause to be included in any agreement, to which a former Japanese trade negotiator commented that it would not be fatal to Japan’s monetary policy. The first stage of the negotiations last through until tomorrow.
A slow start on the data front
There was not much in the way of data releases to upset the apple cart in Asia, and that trend looks to continue into Europe. There is nothing on the slate for either Germany of the Euro-zone and from Switzerland we only have March producer prices.
The US session features the NY Empire State manufacturing index for April and the Bank of Canada’s Business outlook survey. Speeches are due from The Bank of England’s Haskell and the Fed’s Evans.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.