USD/JPY fades spike to fresh 2019 high, back below 112.00
- USD/JPY hit a fresh year-to-date high of 112.17 earlier today. So far, however, the follow-through has been weal.
- The pair has fallen back below 112.00, despite an above-forecast China macro data. The futures on the S&P 500 and treasury yields are also struggling to cheer China data.
USD/JPY is currently trading at 111.95, having hit a 2019 high of 112.17 earlier today.
The lack of strong follow-through has weakened the bullish case put forward by Friday's convincing move above 111.82 (April 5 high).
Also, the pair's inability to hold above 112.00 is somewhat surprising as China's first quarter GDP data and March industrial production and retail sales figure released earlier today was risk-supportive.
That said, the futures on the S&P 500 have also failed to pick up a strong bid in response to China data. At press time, the futures are trading at 2,913, representing just 0.08 percent gain on the day. Further, the 10-year treasury yield is also flatlined on the day near 2.6 percent.
Looking forward, the currency pair may find acceptance below the key support at 111.82 if the European equities ignore upbeat China data and trade in the red, boosting demand for the anti-risk JPY. In the US session, the focus would be on the US' trade balance for February, Fed's Bullard speech, and Fed's Beige Book.
Technical Levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
