USD/JPY: consolidating near yearly highs

USD/JPY Current price: 111.94

Risk appetite persists, although an empty calendar keeps major pairs in range.
US Treasury yields ticked modestly lower at the beginning of the day, adding to quiet trading.

Market's positive mood extended into the weekly opening, although no major breakout was seen in the FX board. The dollar remains weak against most major rivals, while the USD/JPY pair consolidates around the 112.00 figure, slightly lower daily basis amid easing Treasury yields. Gold, the other major safe-haven, is on the back foot and trading at fresh 2-week lows, somehow hinting little room for a yen appreciation.

The macroeconomic calendar was empty during the Asian session, exacerbating the quietness among major pairs. There was little in the EU too, while the US will only offer later today the NY Empire State Manufacturing Index for April, foreseen at 6.0 vs. the previous 3.7. Equities are up in Europe, reflecting the risk-on mood, underpinned by an early headline indicating that the EU is ready to move on to the next stage of trade negotiations with the US.

The USD/JPY pair trades in the 111.90 price zone, offering a neutral-to-bullish stance short-term and according to the 4 hours chart, as technical indicators head nowhere within overbought levels, having barely retreated from their highs from last week. In the same chart, the 20 SMA maintains its upward slope above the larger ones and below the current level, indicating prevailing buying interest. The pair, however, could enter a downward corrective movement on a break below 111.80, the immediate support.

Support levels: 111.80 111.50 111.20

Resistance levels: 112.15 112.50 112.85

View Live Chart for the USD/JPY

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