- Re-attempts 109 handle as DXY stalls the corrective slide.
- Positive tone on the European equities underpins risk-on sentiment.
The USD bulls are back in control in the European session, now pushing the USD/JPY pair further towards the 109 handle.
The renewed strength seen in the spot can be mainly attributed to the resurgent USD demand across the board, as the European traders hit their desks and continue to ride the dollar buying-wave. Meanwhile, the 10-year Treasury yields brace for another run up to 3 percent critical level.
Also, the risk sentiment improves further, with the European equities catching fresh bids, reduces the safe-haven demand for the Yen, in turn collaborating to the latest leg up in the pair.
Further, according to a fresh Reuters report, the Japanese importers are expected to step in ahead of the monthly closing/ the Golden Week holidays on April 30, May 3 and 4.
The immediate focus now remains on the US macro news, including the CB consumer confidence and new home sales data for near-term trading opportunities.
USD/JPY levels to watch
Omkar Godbole, Analyst at FXStreet explains his take on the spot going ahead. “The USD/JPY pair closed yesterday above 108.50 - 38.2 percent Fibonacci retracement of the Jan-March sell-off - opening doors for a rally to 110.00. So, the spot could soon test supply around 110.02 (61.8 percent Fibonacci retracement). However, the overbought conditions as shown by the hourly and 4-hour relative strength index and the presence of downward sloping (bearish biased) 100-day MA around 108.99 could yield consolidation or a minor pullback.”
“The hourly chart shows a bearish price RSI divergence, meaning the pair could test support at 108.50 (38.2 percent Fib support) before rising to 110.00 levels as indicated the bullish daily chart,” Omkar adds.
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 stays near 1.0800 after upbeat US data
EUR/USD stays under modest bearish pressure and trades near 1.0800 in the American session on Thursday. The data from the US showed that the real GDP growth for the fourth quarter got revised higher to 3.4% from 3.2%, supporting the USD and weighing on the pair.
GBP/USD stays in daily range above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.