USD/JPY Current price: 107.79
- Japan’s Merchandise Trade Balance posted a deficit of ¥930.4B in April.
- US Jobless Claims seen at 2.4 million in the week ended May 15.
- USD/JPY holding on to gains could accelerate its advance once above 108.08.
The greenback is recovering some ground across the board, with USD/JPY trading around 107.80, as the market sentiment deteriorates. Late Wednesday, the WHO reported that there were over 100K coronavirus cases in the last 24 hours, the largest one-day jump, although centred in the Americas. Just in the US, there were over 45K new cases, despite the country is believed to have passed the peak and it’s in the process of reopening its economy.
Meanwhile, tensions between the US and China continue to escalate, amid the first blaming Beijing for the coronavirus pandemic. Stocks trade in the red in Asia and Europe, anticipating a soft start to the day for Wall Street.
Overnight, Japan released the April Merchandise Trade Balance, which came in at ¥-930.4B much worse than anticipated. Exports were down by 21.9% while imports decreased by 7.2%. The preliminary estimate of the Jibun Bank Manufacturing PMI came in at 38.4 in May after printing at 41.9 in April.
The US session will bring Initial Jobless Claims for the week ended May 15, foreseen at 2.4 million, and the preliminary estimates of Markit PMIs for May. Both, Services and Manufacturing output are expected to have bounced, but also to remain well into contraction territory.
USD/JPY short-term technical outlook
The USD/JPY pair has recovered from the 107.30 support area, where it bottomed late Wednesday, providing additional relevance to the support. Bears could take their chances if the pair breaks below the level. In the meantime, the short-term picture shows that there are little chances of that happening as the pair is developing above all of its moving averages, and with the 20 SMA maintaining its bullish slope above the larger ones. Technical indicators lack directional strength but hold above their midlines. Another leg higher could be expected on a break above 108.08, the weekly high.
Support levels: 107.30 106.90 106.65
Resistance levels: 108.10 108.45 108.80
View Live Chart for the USD/JPY
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.