- USD/JPY: recovering from the double bottom, piercing 10 and 21-hr smas.
- USD/JPY: Japanese a big miss from expected, still rising.
USD/JPY has kicked off in Tokyo with the bulls showing their hand first, running up 10 pips to the hourly 200 and 50 smas after 30 pip ranged day overnight. Currently, USD/JPY is trading at 107.12, up 0.11% on the day, having posted a daily high at 107.16 and low at 106.99, (NY 106.90 and 107.20).
On the data miss, "Japanese exports rose 2.1 percent in March - its 16th straight monthly rise, although the actual reading was well below the estimated figure of 4.7 percent," USD/JPY is firmer in the consolidation and minor correction in Tokyo, where otherwise, USD/JPY has been on the defensive since 13 April decline at 107.77.
USD/JPY subdued, what's next?
There was a steep rise in equities overnight although the longer-term US treasury yields fell fractionally, (10yrs were lower to 2.81% while the 2yrs made their highest levels since 2008 to 2.40%). Fed chat was mixed but the dollar was softer on a slightly dovish rhetoric from Williams and Evens - (Fed fund futures yields continued to price the next rate hike in June around a 90% chance (Bloomberg calculations) - all in all, making for a subdued performance from the pair overnight.
Eyes will keep on Trump and Abe's meeting that continues on Wednesday, (trade/N.Korea subject matters), and also comments from the likes of Dudley and Quarles. The Beige Book of regional economic anecdotes will also be released.
USD/JPY levels
USDJPY: Continues to hover between the Daily cloud base/Daily Tenkan - Jim Langlands, FX Charts
Valeria Bednarik, chief analyst at FXStreet noted that the pair has posted a lower low and a lower high daily basis for a third consecutive day, although with nothing yet to confirm a bearish breakout.
"Shorter term, and according to the 4 hours chart, the pair continues developing above its 100 and 200 SMA, with the shortest advancing above the largest, and currently acting as dynamic support around 106.60, but with technical indicators holding within negative territory, with limited downward strength, also skewing the risk toward the downside," Valeria added.
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 grinds higher toward 1.0900, Fedspeak eyed
EUR/USD is edging higher toward 1.0900 early Monday, helped by a better market mood. The pair also draws support from softer US Dollar and US Treasury bond yields, awaiting Fedspeak amid light European trading.
Gold price rises to a new record high, escalating geopolitical tensions in focus
Gold price gains momentum on Monday. The yellow metal hit a record high near $2,441 during the Asian session on Monday amid renewed hopes for interest rate cuts from the US Federal Reserve and rising geopolitical tensions in the Middle East.
GBP/USD advances to near 1.2700 due to rising expectations for Fed rate cuts in 2024
GBP/USD extends its gains for the second consecutive session, trading around 1.2710 during the Asian hours on Monday. A weaker US Dollar supports the pair. The Pound Sterling may face a challenge as the BoE is expected to deliver 60 basis points rate cuts in 2024.
Week Ahead: Ethereum and DeFi to come under spotlight this week Premium
Bitcoin’s attempt at a comeback has stirred the pot, causing altcoins to become volatile again. With the US Securities and Exchange Commission set to make its decision on Ethereum ETFs this week, some sectors of altcoins might see higher liquidity and volatility than others.
Will they/won’t they cut rates as commodity prices in focus
What a difference a couple of days make. One day stock markets are making record highs and banking on rate cuts, the next stocks are giving back gains and rate cut expectations are being pared back.