- Trump plans to impose tariffs on China, reviving trade war fears.
- USD/JPY is trading at the lower end of its multi-week range.
The USD/JPY is trading at around 105.73 down 0.28% on the day as the White House takes steps to restrict Chinese investment and to put tariffs on $50B in Chinese imports for stealing technology. Any protectionist news can be interpreted by the market as USD bearish. However, so far the USD seems quite supported with the dollar index trading at 89.83 but showing signs of bull exhaustion at the time of writing.
In the US, Friday will see FOMC´s Member Bostic delivering a speech at 12.10.
Coming up next in Japan is the National CPI dataset which is not as popular as the Tokyo CPI.
Earlier in the US Session, we saw the Initial Jobless Claims for the week ended March 16th coming worse-than-expected while the Continuing jobless claim came in at 1.828m better than anticipated. The Housing Price Index and the Markit Manufacturing PMI in March came both above expectation.
USD/JPY 1-hour chart
The bulls found support at the 105.26 level earlier in the European session and the market managed to bring it up to 105.80 before finding resistance. The bulls broke above the 20 SMA which is seen as an encouraging sign for further higher prices.
USD/JPY 5-min chart
The USD/JPY on the 5-minute chart has formed a wedge pattern at the 105.80 resistance. The structure implies that we could see some resistance at this level. However, if the wedge fails we might have a breakout equal to the bull leg we say today from the bottom at 105.26. Support is seen at 105.50 previous supply zone and 105.30 previous swing low. Resistance is seen at 106 previous high and at 106.20 previous supply zone.
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.
Latest Forex News
Editors’ Picks
EUR/USD advances 1.10 amid upbeat trade headlines, after mixed US retail sales
EUR/USD is trading closer to 1.1050, up on the day. US Commerce Secretary Ross has expressed optimism about reaching a deal with China. The Retail Sales Control Group met expectations with 0.3%.
GBP/USD soars past 1.2900 as Farage gives additional boost to Conservatives
GBP/USD has leaped above 1.29, the highest since early November, as the Brexit Party has failed to field candidates in 43 additional seats, facilitating a victory for PM Boris Johnson.
USD/JPY clings to gains near session tops, around 108.70 post-US data
The USD/JPY pair maintained its strong bid tone near session tops and had a rather muted reaction to the mixed US economic data.
Gold looks to close week with small gains below $1,470
The precious metal struggled to find demand on Friday as the upbeat market mood on renewed hopes of the United States and China reaching a trade deal to avoid a tariff hike in December caused investors to move away from safe havens.
Crypto Today: Playing with the thin red line
BTC/USD has fallen below $8,500 during the Asian trading session. A close below this support level would put $7,500 on the trading table. ETH/USD is moving below the 50-period exponential moving average.