- Doubts over the US economic strength remain present to limit the USD growth.
- 109.75/70 seems immediate support to watch during further pullback
USD/JPY trades near 110.00 during early Tuesday. The quote recently took a U-turn from 110.25-30 resistance-area as US Dollar (USD) remains weak on recession fears. Housing and consumer confidence data from the US will be important to watch next.
The US 10-year treasury yield is presently up 4 basis points (bps) to 2.425% from Friday’s 2.377% that triggered global anticipation of the US recession targeting earlier such event of 10-year to 3-month yield inversion during 2007. Weaker than the previous -0.25 figure of Chicago Fed national activity index to -0.29 also highlighted the economic weakness of the US on Monday.
Adding to the pessimism were comments from the Standard Chartered CEO that highlighted fears from China’s economic growth slowdown.
Traders also took negative clues from the Federal Reserve Bank of Boston President Eric Rosengren when he expected slower growth during the first quarter of the present year.
Investors may now emphasize on the February month housing market numbers and confederation board’s consumer confidence survey results for fresh direction while keeping a tab on global risk sentiment.
USD/JPY Technical Analysis
The 110.25/30 are comprising March 25 high and low of March 21 restricts the pair’s immediate upside, a break of which highlights 50-day simple moving average (SMA) figure of 110.45 and 111.00.
Alternatively, 109.75/70 seems immediate support ahead of highlighting 109.30 and 109.00 rest points.
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