- USD/JPY is currently trading just below the 5-week resistance line.
- Risk appetite in a better place and supporting the pain in its northerly correction.
USD/JPY is up +0.09% in Tokyo, steady on the open while risk-appetite dictates the trajectory again, with a more optimistic view over the trade wars following a series of positive headlines coming out of both the US and China and subsequent media channels. USD/JPY is currently trading at 106,42, just off the highs of 106.54 and testing the August resistance area.
Risk appetite returned overnight and the Dow Jones Industrial Average added 326.15 points, or 1.3%, to end at 26,362.25, while the S&P 500 index SPX, climbed 36.64 points, or 1.3%, to finish at 2,924.58 after China said it wouldn’t immediately retaliate against the latest U.S. tariffs increases.
US data
Elsewhere, US data came with the Quarterly second GDP growth reading that was revised fractionally lower to 2.0% from 2.1%. This was led by less government spending than initially estimated and a bigger decline in residential investment.
"Personal spending was revised up to show an even punchier 4.7% annualised pace (vs 4.3% first estimate), highlighting the consumer’s role as the key pillar of US growth. US pending home sales fell 2.5% in July, a larger than expected decline. Still, pending home sales are 7% above their low point in late 2018, lower mortgage rates and a healthy jobs market providing a sound backdrop for the housing industry," analysts at Westpac explained. Subsequently, US 2-year treasury yields rose from 1.49% to 1.54%, the 10-year yield climbed from 1.44% to 1.53%.
USD/JPY levels
Valeria Bednarik, the Chief Analyst at FXStreet explained that the USD/JPY pair the pair is above the 20 and 100 SMA on a 4-hour basis, while below the 200 simple moving average, now at around 107.00.
"Technical indicators hold on to daily highs decelerating their advances rather in line with decreased volumes that indicating upside exhaustion. The pair could resume its decline on a break below 106.40, while the short-term rally will likely continue once above 107.00."
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
USD/JPY flat-lines below 151.50 after soft Japanese CPI data
USD/JPY stays defensive below 151.50 after the release of a soft Japan's CPI report and mixed Industrial Production and Retail Sales data on Friday. Japanese verbal intervention also weighs on the pair amid the holiday-thinned conditions on Good Friday. US PCE inflation awaited.
AUD/USD buyers lack vigor above 0.6500 amid Good Friday trading lull
AUD/USD is trading listlessly above 0.6500 in the Asian session amid light trading on Good Friday. The Aussie pair shrugs off encouraging comments from China's FX regulator, as price action remains subdued ahead of the US PCE inflation data.
Gold ends Q1 2024 at record highs, what’s next?
Gold is sitting at an all-time high of $2,236, lacking a trading impetus amid holiday-thinned conditions on Good Friday. Most major world markets, including the United States are closed in observance of Holy Friday, leaving volatility around Gold price highly subdued.
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple price has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. As this coiling up comes undone, investors can expect XRP to kickstart a massive rally.
Will they won’t they cut rates is the question of Q2?
There has been some significant push back from Fed and Bank of England members around the timing of rate cuts, and the Bank of Japan still haven’t physically intervened in the FX market to stem yen weakness although they are threatening to do so.