• Reviving safe-haven demand underpins JPY and prompts some fresh selling on Thursday.
• The USD bid tone picks up the pace after mostly in line US macroeconomic releases.
• The upside remains capped amid weaker US bond yields and ahead of Easter holidays.
The USD/JPY pair trimmed a part of its early slide and recovered around 20-pips from weekly lows, albeit struggled to make its way back above the 112.00 round figure mark.
The pair struggled to capitalize on last week's goodish up-move and once again faltered near the 112.15 region - March swing highs, rather met with some supply on Thursday amid reviving safe-haven demand. Sluggish Euro-zone manufacturing PMI prints resurfaced market concerns about the global economic outlook, which boosted the Japanese Yen's safe-haven status and dragged the pair to an intraday low level of 111.77.
Meanwhile, the downside remained cushioned amid a goodish pickup in the US Dollar demand, further supported by today's mostly upbeat US economic data - monthly retail sales data and initial weekly jobless claims. However, a sharp pullback in the US Treasury bond yields, primarily on the back of the global flight to safety kept a lid on the attempted intraday recovery move, at least for the time being.
It would now be interesting to see if the pair is able to attract any follow-through buying or continues with its subdued trading action amid a mildly positive opening in the US equity markets and ahead of a long Easter weekend.
Technical Outlook
Yohay Elam, FXStreet's own Analyst writes: “Critical resistance awaits at the double-top of 112.15 which capped the pair in mid-April and early March. 112.65 capped a recovery attempt in December and also worked as support beforehand. 113.15 was a support line in early December on two occasions. The round number of 114 was a peak in November.”
“The 200-day SMA meets a peak from early January at 111.50. 110.75 provided support in mid-April and also in mid-March. 110.25 was a support line in February, separating ranges back then. 109.75 was the low point in March and marked the beginning of the uptrend support line,” he added further.
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 holds above 1.0700 ahead of key US data
EUR/USD trades in a tight range above 1.0700 in the early European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays above 156.00 after BoJ Governor Ueda's comments
USD/JPY holds above 156.00 after surging above this level with the initial reaction to the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.