USD/JPY pierces 108.50 ahead of Tokyo open on Good Friday
|- USD/JPY defies the previous declines amid the less active Good Friday session.
- Risk-tone searches for direction, broad US dollar weakness played its role at the last.
- Easter holiday can limit liquidity but Japan open might entertain the Asian traders.
USD/JPY recently broke the 10-pips range between 108.40 to 108.50 while rising to 108.56, currently near 108.53, ahead of the Tokyo open during Friday’s Asian session. The Good Friday holiday limits the pair’s moves as the traders await the Japanese market’s open for fresh impulse. Also contributing to the lack of clarity could be the broad US dollar weakness and mixed risk catalysts.
The US dollar earlier weakened across the board as downbeat US Jobless Claims and the worrisome comments from the Fed Chairman Jerome Powell majorly contributed to the greenback’s declines. In doing so, the US currency ignored the Fed’s action comprising favors for the mid-sized businesses.
The US Jobless Claims flashed another six million-plus figures and the Fed Chair became the first big central bank leader to openly cite worries some second quarter of 2020.
Market’s risk-tone remains mixed with the 10-year treasury yields declining four basis points (bps) to 0.73% whereas Wall Street posting another day of gains by the end of their Thursday moves.
Moving on, traders will keep eyes on Japan markets’ open, with March month Producer Price Index (PPI) preceding the opening bell. It should also be noted that most bourses are closed due to the Easter break and hence a lack of liquidity could be witnessed during the day.
Technical analysis
Unless providing a daily close below 200-day SMA level of 108.35, buyers may remain hopeful to aim for the weekly high surrounding 109.40.
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