- Regional Fed Presiden Robert Kaplan, Neel Kashari and Raphael Bostic are set to speak in the US session on Monday.
- The diplomatic tensions between the US and Russia weigh on the general market sentiment.
The USD/JPY is trading at around 107.21 down 0.13% on Monday as the diplomatic tensions between the US and Russia are still weighing on the US dollar. Additionally, the yen is a safe-haven in times of geopolitical uncertainties and the US-Russia diplomatic escalation might lead to a flight to safety and the appreciation of the Japanese Yen.
The US-led airstrike on Syria over the weekend was shrugged off by investors as US stock markets gapped to the upside Many analysts saw the attack as an isolated event. However, the focus now shifts to the diplomatic consequences between the US and Russia.
Further out in the US session, attention will also be on the three Fed speeches. Dallas Fed President R.Kaplan, a non-voter in the rate-setting FOMC and having a hawkish stance is scheduled to speak at 16:00 GMT. Delivering his speech at the same time of the day will be the rather dovish Minneapolis Fed President N.Kahkari who is also non-voter and finally the Atlanta Fed President R.Bostic, FOMC voter and centrist is slated to speak at 17:15 GMT.
Earlier, the US Retail Sales came in better-than-expected in March (month-on-month) at 0.6% versus -0.1% in January. The retail sales ex-autos came in line with analysts’ expectations at 0.2% m/m in March. The section of the retail sales called control group, included in the GDP, also came in line at 0.4% m/m as forecast by analysts. However, the Empire State Manufacturing Index fell to 15.8 in April from 22.5 the month earlier; analysts were forecasting 18.6 in April. The USD/JPY had a mild negative reaction to the recent news as it lost approximatively 20 pips from 107.41 prior to the data.
No Japanese macro data will be released on Monday, however, Tuesday will see mid-tier data on the Japanese Industrial Production and Capacity Utilization.
USD/JPY 4-hour chart
-636594839495025143.png)
Supports lie at 107.12 and 106.61 swing lows while bulls should find resistance at 107.79 swing high, quickly followed by the 108 figure and finally 109 psychological level.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.