USD/JPY is up near technical resistance at 150.00 – BBH

FXStreet Insights Team FXStreet

Japanese Yen (JPY) is underperforming most major currencies and USD/JPY is up near technical resistance at 150.00, BBH's FX analysts report.

BoJ is unlikely to tighten the policy by more than is currently priced

"Private sector activity in Japan deteriorated in March. The composite PMI fell from a six-month high of 52.0 in February to 48.5 in March, to signal a renewed reduction in business activity. The services PMI fell to a three-year low at 49.5 vs. 53.7 in February and the manufacturing PMI plunged to a multi-year low at 48.5 vs. 52.0 in February."

"Meanwhile, Japan Finance Minister Katsunobu Kato cautioned that 'Japan has not overcome deflation'. Kato pointed out that rising prices are still being driven by a weak yen and high commodity costs rather than a virtuous cycle of rising wages and consumer demand."

"Bank of Japan (BoJ) is unlikely to tighten the policy by more than is currently priced which is a headwind for JPY. The swaps market continues to imply less than 50bps of rate hikes over the next twelve months."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD rises toward 1.1650 despite increased risk aversion

EUR/USD gains ground after four days of losses, trading around 1.1630 during the Asian hours on Monday. The upside in the risk-sensitive pair may remain capped amid rising safe-haven demand, driven by escalating uncertainty surrounding the US–Greenland issue.

GBP/USD gathers strength to near 1.3400 on Trump’s tariff threats

The GBP/USD pair gains traction to around 1.3400 during the early Asian session on Monday. The US Dollar weakens against the Pound Sterling amid US President Donald Trump's latest tariff threats against Europe over ‌Greenland. The US markets are closed in observance of the Martin Luther King Jr. Day holiday on Monday.

Gold skyrockets to record high as dispute over Greenland escalates

Gold spikes to a fresh all-time peak, around the $4,700 neighborhood, at the start of a new week as US President Donald Trump reignites a trade war over Greenland, boosting demand for safe-haven assets. Moreover, a US Dollar pullback from its highest level since December 9 turns out to be another factor benefiting the bullion. However, growing on-hold Fed bets could act as a headwind for the non-yielding yellow metal.