USDJPY: Upside attempts remain capped below 112.15
|- Rise in Treasury yields offset by risk-on led broad USD weakness.
- Focus shifts to US trade data and Fed’s Beige Book for fresh impetus.
Having consolidated briefly around the 112 handle, the USDJPY pair caught fresh bids in the European session and jumped to fresh session tops at 112.07, as the European traders cheered strong Chinese macro releases and fuelled a fresh risk-on wave.
However, the renewed uptick soon fizzled and the rates reverted to the 112 handle, little changed on the day. The upside attempts continue to lack follow-through, mainly in response to broad-based US dollar weakness, as increased demand for the risk assets such as the US Treasury yields, S&P 50 futures and commodities continue to weigh on the safe-haven greenback.
On the JPY-side of the equation, the sentiment around the Yen remains underpinned, as upbeat Chinese data dump continues to lend support to the Asian currencies such as the Yuan, Ringgit, etc.
However, the upside in the Japanese currency remains limited by downbeat Japanese trade figures, leaving the USD/JPY pair trapped in a narrow range around the 112 level. It's worth noting that Japan’s exports fell for a fourth straight month in March as China-bound shipments slumped again.
Moving on, the spot will remain at the mercy of the USD dynamics heading into the release of the US trade report and Fed’s Beige book due later in the NA session. Also, in focus, remains the speech by the FOMC member Bullard for fresh hints on the US interest rates outlook.
USDJPY Technical Levels
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