USD/JPY: better bid over risk-on Wall Street, upside favoured above 111.50


  • USD/JPY: bulls and bears tug over the 111 line but bulls have the edge on a fundamental and technical basis.
  • Should the trade spat between China and the US actually start to diminish, that may put the breaks on the dollar in the near term.

USD/JPY has been less perky in the Tokyo open that what we were seeing in overnight markets since yesterday's US/China trade headlines which brought about some relief in the ongoing trade war saga that has otherwise been keeping a lock on caged-up bulls. Currently, USD/JPY has been oscillating around 111 the figure having made an Asian high of 111.21 and a low of 110.83.

USD/JPY has certainly attracted some attention over the last 72 hours. We had that big sell-off midweek from 111.40 where the drop was picked up 100 pips lower. There has been plenty of negativity out there but the greenback is picking up the safe haven bid when the broader risk is taken into consideration being the undercurrent of EM risks and a dollar shortfall offshore.

The greenback is a two-sided coin 

However, should the trade spat between China and the US start to diminish, that may put the breaks on the dollar in the near term as risks of import tariffs would otherwise likely fuel inflation at the same time the Fed is in the midst of a rate hike cycle. However, the very fact that the Fed is raising rates gives the dollar the edge and the offshore shortfall will keep the greenback underpinned for the foreseeable future. USD/JPY Continues to find support against 110.00-50 and while holding there, the risk profile favours the upside. 

USD/JPY levels

Valeria Bednarik explained that the 4 hours chart reflects that markets players are unwilling to move away from the safe-haven yen, but there's a certain balance in it amid dollar also considered a refugee:

"Sellers were quick around a flat 100 SMA, offering a dynamic resistance around 111.20, while despite posting modest recoveries, technical indicators are still stuck to neutral readings. The pair would need to clear the 111.50 price zone to be able to extend its advance with a firmer upward potential."

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD hovering above 1.1050 amid trade concerns, ahead of ECB minutes

EUR/USD is trading above 1.1050, at familiar levels. Doubts that a US-Sino trade deal may be reached are weighing on markets. The Fed's minutes have reaffirmed the wait-and-see mode, and the ECB's minutes are awaited. 

EUR/USD News

GBP/USD advances above 1.29 as Conservatives remain in the lead

GBP/USD is rising above 1.29 as fresh opinion polls continue showing a solid lead for Prime Minister Boris Johnson's Conservatives. Further political headlines are awaited.

GBP/USD News

USD/JPY bounces-off 50-DMA but lacks follow-through

USD/JPY has bounced up from the 50-day MA support of 108.28. China's Vice Premier Liu He is cautiously optimistic about the prospects of the US-China trade deal. Related markets, however, are not buying Liu He's optimism, keeping the recovery in check. 

USD/JPY News

Gold flirting with session lows, around $1470 region

Gold edged lower through the Asian session on Thursday and is currently placed near the lower end of its daily trading range, around the $1470 region.

Gold News

Hong Kong now a feature in trade negotiations?

The US Senate and House have both passed the Hong Kong Human Rights and Democracy Bill, so now it heads to the desk of US President Trump to either sign or veto it. Sources suggest that the President will sign it into law.

Read more

Forex MAJORS

Cryptocurrencies

Signatures