USD/JPY catches early Asia risk-on bid through key 4hr 10-SMA, eyes on 111.50 barrier level


  • USD/JPY opens with a bullish gap in early risk-on Asia, jumping above the 4hr 10-SMA at 110.81.
  • USD/JPY bullish as China and the US agreed not to engage in a trade war.

USD/JPY is currently trading at 110.89 at the time of writing, up from 110.74 and having marked its intentions early on in the day; 110.92 traded. The bulls are taking charge as it appears to be a green light for risk at the start of the week with the weekend news that China and the US have managed to avert a trade war, so far. US Treasury Secretary, Mnuchin, announced in a television interview,

 "We are putting the trade war on hold. Right now, we have agreed to put the tariffs on hold while we try to execute the framework."

More on this here: China and U.S. agreed not to engage in a trade war - ANZ

Meanwhile, USD/JPY managed a high of 111.08 last week, (an option barrier defence level), but dropped lower on Friday in a correction of the 17th MAy bid from 110.25.  The Yen had picked up a safe haven bid into the last day of trade last week.  Investors were eyeing the Italian coalition implications and potentially negative for markets, tracking lower stocks with the S&P down testing the100-D SMA support again and was buoyed by a narrowing of the Japanese/US spread with US yields slipping back. USD/JPY scored 110.84 in late London and fell to 110.65 in early NY trade after a premarket slide in US stocks. NY closed at 110.75 on Friday. 

USD/JPY levels

110.85 has been a pivotal level, but the bulls were unable to hold the level into the weekend. However, their intentions are clear at the start of this week so far, but a close above the level over consecutive days is needed put eyes back on the 112.30's, (Fibos at 112.22/33) 111.50 needs to be broken first as being another potential option barrier. Below the 200-D SMA, (109.92), 109.40/50 guards a run towards and a break below the 108.50 level; This will open risk towards the 50-D SMA before the 2018 low at 104.63 as a key support.

Share: Feed news

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


Recommended content

Editors’ Picks

USD/JPY holds near 155.50 after Tokyo CPI inflation eases more than expected

USD/JPY holds near 155.50 after Tokyo CPI inflation eases more than expected

USD/JPY is trading tightly just below the 156.00 handle, hugging multi-year highs as the Yen continues to deflate. The pair is trading into 30-plus year highs, and bullish momentum is targeting all-time record bids beyond 160.00, a price level the pair hasn’t reached since 1990.

USD/JPY News

AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation

AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation

The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up. The pair traded at 0.6518.

AUD/USD News

Gold soars as US economic woes and inflation fears grip investors

Gold soars as US economic woes and inflation fears grip investors

Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.

Gold News

Ethereum could remain inside key range as Consensys sues SEC over ETH security status

Ethereum could remain inside key range as Consensys sues SEC over ETH security status

Ethereum appears to have returned to its consolidating move on Thursday, canceling rally expectations. This comes after Consensys filed a lawsuit against the US SEC and insider sources informing Reuters of the unlikelihood of a spot ETH ETF approval in May.

Read more

Bank of Japan expected to keep interest rates on hold after landmark hike

Bank of Japan expected to keep interest rates on hold after landmark hike

The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.

Read more

Forex MAJORS

Cryptocurrencies

Signatures