USD/JPY Forecast: Risk-appetite pushing investors away from safe-haven assets

Valeria Bednarik FXStreet

USD/JPY Current price: 107.59

Soaring equities in China amid optimism on economic growth leading the way.
US June ISM Non-Manufacturing PMI foreseen at 50 from 45.4 in the previous month.
USD/JPY confined to familiar levels as the market stays away from the greenback.

The financial markets are all about risk appetite at the beginning of the week, with China pushing the way higher as the Shanghai Composite is up by over 5,7%, and the Hang Seng added over 1,000 points. Safe-haven assets are under pressure, with the dollar being the worst performer, although adding some ground against the Japanese yen. There was no particular catalyst behind the upbeat mood, but optimism from Chinese authorities about an economic rebound, given the latest macroeconomic figures.

The continuation of the ongoing sentiment will depend on US data to be out later today. The country will publish today the official ISM Non-Manufacturing PMI, foreseen in June at 50 from 45.4 in the previous month.

USD/JPY short-term technical outlook

The USD/JPY pair is trading marginally higher for the day, still ranging around the 107.50 Fibonacci level. A neutral stance persists in the short-term and according to the 4-hour chart, although the bearish potential seems limited. The pair is battling with a directionless 200 SMA, while above the shorter ones. Technical indicators, in the meantime, head nowhere just above their midlines.

Support levels: 107.20 106.95 106.60

Resistance levels: 107.95 108.30 108.65

View Live Chart for the USD/JPY

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.

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