USD/JPY: Firmer above 21-DMA amid risk-on, sluggish Japan data
|- USD/JPY rises further as sluggish data from Japan adds to previous trade-led risk-on.
- Escalating equities and bond yields offered additional strength to the upside.
USD/JPY extends the previous run-up beyond 21-DMA as it takes the bids to 106.50 during early Friday.
The pair initially stretched the earlier recovery based on optimism surrounding the US-China trade optimism after China turned down the September 15 tariff hike on the US goods in search of better negotiations during next month’s talks.
The advances later-on gained momentum as Japan’s Tokyo Core Consumer Price Index (CPI) and Retail Trade spread disappointment. Further, positive reading of S&P 500 Futures, rising Asian equities and the US treasury yields also offer background music to the markets’ risk-on.
Traders mostly ignored news concerning arrests of key protesters in Hong Kong as well as the US launching Space Command to counter threats from Russia and China.
While trade/political news will keep directing near-term market sentiment, Personal Income/Consumption, Chicago Purchasing Managers’ Index and Michigan Consumer Sentiment Index from the United State (US) will also entertain market players.
Technical Analysis
A three-week-old falling trend-line near 106.70 becomes immediate resistance to watch whereas 21-day simple moving average (DMA) can limit pair’s near-term declines.
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.