USD/JPY Forecast: Bulls needing a reason to keep buying

Valeria Bednarik FXStreet

USD/JPY Current price: 108.27

The BOJ left its monetary policy unchanged, pledged to keep supporting the economy.
US CB Consumer Confidence expected to have improved to 114.1 in April.
USD/JPY could extend gains in the upcoming session, needs to break 108.50.

The USD/JPY pair extended its advance to 108.42 this Tuesday, as the greenback got some love across the board early London, although with limited gains and already changing course. The pair trades at around 108.25, retaining modest intraday gains.

Generally speaking, the market’s mood is sour, with European indexes trading in the red, and US government bond yields ticking higher. Major pairs hold within familiar levels, as investors remain focused on first-tier events scheduled for later in this week.

During the Asian session, the Bank of Japan had a monetary policy meeting, and as widely anticipated, policymakers left the current policy unchanged. Governor Haruhiko Kuroda said that they would ease monetary policy further without hesitation as needed, and warned that consumption will likely stall at low levels amid the state of emergency curbs.

The US will publish the April Richmond Fed Manufacturing Index and some housing-related data. It will also unveil CB Consumer Confidence, foreseen in April at 113.1 from 109.7 in the previous month.

USD/JPY short-term technical outlook

The near-term picture for the USD/JPY pair provides a neutral-to-bullish perspective. The pair is above a flat 20 SMA, although the 100 SMA accelerated its decline below the 200 SMA, both above the current level. Technical indicators have lost their bullish strength but hold near their daily highs well above their midlines. The pair needs to surpass the 108.50 resistance level to confirm a bullish continuation ahead.

Support levels: 108.00 107.65 107.20

Resistance levels: 108.50 108.90 109.30

View Live Chart for the USD/JPY

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data.

Gold sticks to modest losses above $5,000 ahead of US data

Gold sticks to modest intraday losses through the first half of the European session, though it holds comfortably above the $5,000 psychological mark and the daily swing low. The outcome of Japan's snap election on Sunday removes political uncertainty, which along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood. This turns out to be a key factor exerting downward pressure on the safe-haven precious metal.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.