USD/JPY on the bids near 109.60 as Tokyo open emphasize domestic data
|- Weak domestic price data highlights the need for BOJ’s easy monetary policy.
- Second-tier economic numbers and market reaction after the extended weekend will be in the spotlight.
The USD/JPY pair is taking the rounds near 109.60 as Japanese Yen (JPY) weakens on softer than expected domestic data around Tokyo open on Tuesday.
The April month corporate service price (YoY) dropped to the year’s low of 0.9%, needless to mention that it lagged behind 1.1% market consensus and prior.
With the sluggish domestic data emphasizing Bank of Japan’s (BOJ) easy monetary policy, investors cared less for recent risk events like EU election results and the trade stalemate between the US and China.
Reports of the mass attack in Tokyo (on 15 people) and Financial Times’ piece conveying Japanese macro advisers’ push to the BOJ towards more early policy also couldn’t gain market players’ attention.
The US and the UK markets were off on Monday which in turn portrayed less momentum.
The global risk barometer, 10-year treasury yields from the US, is in the negative territory to 2.315%.
Looking forward, second-tier data from the US, like house price index and consumer confidence, could be on the radar while the US and the UK traders’ reaction to latest market events will also be observed closely.
Technical Analysis
While 109.80, 110.30 and 100-day simple moving average (SMA) near 110.60 could keep limiting the pair’s near-term upside, 109.30, 109.00 and 108.50 might become sellers’ favorite during the decline.
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