USD/JPY Current price: 109.63
- US yields curve inverted once again, triggering dollar's selling.
- Risk aversion correlated to the US-China trade relationship backing Yen's gains.
The Japanese currency appreciated further against its American rival on the back of risk sentiment, with the USD/JPY pair falling to 109.46, its lowest since early February, amid escalating trade tensions between the US and China, sending equities further lower worldwide. Also, US government bond yields declined with the yield on the 10-year Treasury note falling early US session below that of the 3-month bill, inverting part of the yield curve and triggering concerns about the US economic health. Things cooled a bit as Wall Street bounce, while the yield on the 10-year note trimmed early losses and settled at 2.46%. Nevertheless, the dollar remained out of the market's favor, with the USD/JPY pair finishing the day around 109.70. In the data front, Japan released Consumer Confidence which resulted better-than-expected, although declined when compared to the previous month, printing 40.4 in April. The country will release March Labor Cash Earnings and Overall Household Spending during the upcoming Asian session, alongside the BOJ Summary of Opinions.
The USD/JPY pair is poised to extend its decline according to technical readings in the 4 hours chart, even despite the persistent oversold conditions, given that the pair continues developing far below moving averages, and with the 20 SMA maintaining its strong bearish slope far below the larger ones. Technical indicators have neutral-to-bearish slopes holding within oversold territory yet above their recent lows, keeping the risk skewed to the downside.
Support levels: 109.45 109.10 108.80
Resistance levels: 109.90 110.25 110.50
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.