- USD/JPY stays on the front foot, up for fourth consecutive day.
- Covid vaccine-linked optimism fades on fresh virus-led activity restrictions in Europe.
- Geopolitical tensions, fears of early Fed rate hike add strength to the bullish bias.
- Omicron, China and inflation are the key catalysts to watch for near-term directions.
USD/JPY picks up bids to refresh intraday top around 113.80 as Tokyo opens for Thursday.
The yen pair prints a four-day uptrend as yields stays firmer amid fresh coronavirus fears from the West, challenging the previous optimism that the South African covid variant, dubbed at Omicron, is milder than the previous strains. Also challenging the market sentiment and underpinning the US bond coupons are the chatters over the US-China and Fed rate hikes.
The re-introduction of the virus-led activity restrictions in Germany, France and the UK renews COVID-19 fears in the market even if major vaccine producers cite booster shots as effective to tame Omicron.
On the other hand, Sino-American tussles are likely escalating as US Assistant Secretary of Defense for Indo-Pacific Security Affairs Ely Ratner said, “Bolstering Taiwan's self-defenses is an ‘urgent task’ and an essential feature of deterring China”. Also favoring the risk-off mood are the news suggesting the diplomatic tussles of the Washington-Tehran and the US-Russia.
At home, Japan’s Prime Minister Fumio Kishida battles for the record covid stimulus in the Parliament as Tokyo registered the fourth Omicron case.
In addition to the virus-linked headlines and geopolitical fears, fresh chatters over the Fed’s rate hike, triggered by Reuters’ poll, also weigh on the US bonds and favor the Treasury yields, as well as the USD/JPY prices.
That said, the US 10-year Treasury yields rise 1.4 basis points (bps) to 1.52%, up for the fourth consecutive day, whereas S&P 500 Futures print mild losses at the latest.
Given the recent shift in the market sentiment, the USD/JPY is likely to remain stronger as markets brace for Friday’s US Consumer Price Index (CPI) data.
A daily close beyond 50-DMA, around 113.55 by the press time, pushes USD/JPY prices toward October’s top near 114.80. However, the 114.00 threshold may offer an intermediate halt during the anticipated rise.
Additional important levels
|Today last price||113.77|
|Today Daily Change||0.10|
|Today Daily Change %||0.09%|
|Today daily open||113.67|
|Previous Daily High||113.95|
|Previous Daily Low||113.31|
|Previous Weekly High||113.96|
|Previous Weekly Low||112.53|
|Previous Monthly High||115.52|
|Previous Monthly Low||112.53|
|Daily Fibonacci 38.2%||113.71|
|Daily Fibonacci 61.8%||113.56|
|Daily Pivot Point S1||113.34|
|Daily Pivot Point S2||113|
|Daily Pivot Point S3||112.7|
|Daily Pivot Point R1||113.98|
|Daily Pivot Point R2||114.28|
|Daily Pivot Point R3||114.62|
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.
Follow us on Telegram
Stay updated of all the news
EUR/USD rises toward 1.0800 as USD weakens
EUR/USD has gained traction and advanced toward 1.0800 in the early American session on Monday. The positive opening witnessed in Wall Street makes it difficult for the US Dollar to find demand and helps the pair continue to push higher.
GBP/USD closes in on 1.2300 as mood improves
GBP/USD has preserved its bullish momentum and advanced to the 1.2300 area in the second half of the day on Monday. The risk positive market atmosphere makes it difficult for the US Dollar to stay resilient against its rivals and fuels the pair's daily rally. Eyes on BOE Governor Bailey's speech.
Gold extends slide below $1,950 as US yields rebound
Gold price has extended its daily slide and dropped below $1,950 in the early American session. Amid easing fears over a global banking crisis, the benchmark 10-year US Treasury bond yield rebounded above 3.5% on Monday, weighing heavily on XAU/USD.
Four reasons why SUSHI holders will have a bullish week despite SEC's move
SushiSwap price undid the early March gains in the last week after the SEC subpoenaed the platform’s head chef Jared Grey. As a result of this announcement, the token collapsed by roughly 18%.
Alibaba (BABA) edges higher after Jack Ma returns to China for AI talk
BABA shareholders begin the week with a glimmer of hope after founder Jack Ma was seen visiting China after spending more than one year abroad. The report originally led to Alibaba's shares in Hong Kong rising 4% before subsiding.