USD/JPY clings to 112.00 as Tokyo opens for an active day
|- The risk sentiment remains little changed due to a lack of major catalysts during holidays.
- With most of the global traders likely to return to markets on Tuesday, investors will have an active day despite having little on the economic calendar to watch.
The USD/JPY pair is on the rounds near 111.90 as Tokyo market opens for Tuesday’s trading session. The quote seesawed at the start while marking initial reaction to the news reports that signal hardships for Iranian crude exports from the US and expected cross-party talks to safeguard her position by the UK PM May.
With some of the global markets being absent of Monday, coupled with lack of big releases, traders remained mostly calm except favoring oil on supply crunch expectations and trimming some greenback gains past-housing data.
Global equity markets also followed the suit with little change due to the absence of major catalysts. The DJIA shed nearly 47 points but S&P and Nasdaq were in gains.
Risk tone wasn’t also affected much as 10-year treasury yields from the US stood unchanged near 2.58%.
Although the US housing numbers can direct immediate moves, major attention will be given to Thursday’s monetary policy meeting by the Bank of Japan (BOJ) and Friday’s first quarter (Q1 2019) preliminary gross domestic product (GDP) numbers from the US.
It should also be noted that the return of global traders from Easter holidays and the UK lawmakers’ come back to the parliaments after a long break will offer an active trading day.
USD/JPY Technical Analysis
While 111.80 seems the closest support, 200-day simple moving average (SMA) level of 111.55 and 111.20 comprising 50-day SMA shouldn’t also be missed during the pair’s downside.
On the upside, the break of 112.20 can trigger the quote’s rise to 112.70, and 113.00 while 113.30 and 113.80 may challenge the bulls afterward.
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