- USD/JPY bears are taking control in the Asian session.
- USD/JPY to find bids at 112.70 and then at 112.50?
USD/JPY has been consolidating around the 113 handle until markets got into risk-off mode on the Trump news. Currently, USD/JPY is trading at 112.91, down -0.13% on the day, having posted a daily high at 113.16 and low at 112.88.
Trump’s campaign has been ordered to turn over information to Mueller’s investigation
Special counsel Robert Mueller’s investigators have issued a subpoena to President Trump’s election campaign for documents related to Russia, according to a new report from The Wall Street Journal.
Recent price action in USD/JPY and US rates
USD./JPY dropped from the aforementioned highs just before the Tokyo open. Meanwhile, US 10yr treasury yields climbed from 2.32% to 2.36% overnight, while the 2yr yields made another nine-year high moving from 1.69% to 1.71%. Within the improved risk sentiment, US stocks bounced amid solid company earnings making for a soft yen towards the 113 handle below the hourly cluster of MA's resisted.
USD/JPY levels
Valeria Bednarik, chief analyst at FXStreet explained that from a technical point of view, the 4 hours chart shows that the pair was unable to recover above the 200 SMA, while technical indicators have bounced modestly within bearish territory, but remain well below previous highs, all of which maintains the risk towards the downside.
"Back above 114.00 and the 9 Nov high of 114.06 is unlikely today but if wrong, could return to 114.35/45 and beyond, towards the 114.73, 6th Nov high. Further out, we could eventually see a retest of the descending trend resistance, currently at around 114.90, and a break of 115.00 would then see little resistance until 115.20 and then 115.50," explained Jim Langlands at FX Charts who added that the downside will once again find bids at 112.70 and then at 112.50, "This may hold today, but if wrong, look for a move towards 112.30 and 112.00, ahead of strong support at 111.80 (100 DMA/200 DMA)."
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 holds gains near 1.0650 amid risk reset
EUR/USD is holding onto its recovery mode near 1.0650 in European trading on Friday. A recovery in risk sentiment is helping the pair, as the safe-haven US Dollar pares gains. Earlier today, reports of an Israeli strike inside Iran spooked markets.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD is rebounding toward 1.2450 in early Europe on Friday, having tested 1.2400 after the UK Retail Sales volumes stagnated again in March, The pair recovers in tandem with risk sentiment, as traders take account of the likely Israel's missile strikes on Iran.
Gold price defends gains below $2,400 as geopolitical risks linger
Gold price is trading below $2,400 in European trading on Friday, holding its retreat from a fresh five-day high of $2,418. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row, supported by lingering Middle East geopolitical risks.
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.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.