USD/JPY looks for a firm direction above 107.00 with eyes on US civil unrest
- USD/JPY fails to extend the previous day’s losses amid fresh challenges to risk.
- National Guard troops deployed near the White House, 200 military police in Washington to keep a tab on riots.
- Medical examiner lists George Floyd’s death a homicide, White House management asked staff to leave by 04:00 PM.
- A lack of data from Japan keeps traders focused on the geopolitical issues for fresh impulse.
USD/JPY drops to 107.60, following an initial spike to 107.68, during the pre-Tokyo open Asian session on Tuesday. The yen pair dropped the previous day amid broad US dollar weakness. Though, the losses were limited amid the market’s risk-on sentiment. With that in the backdrop, the latest decline of the pair seems to have taken clues from worsening situations in the US where the death of Minnesota’s unarmed resident triggered nationwide riots.
US riots turn severe, push President Trump to speak…
Amid the national unrest due to the alleged police killing of an unarmed resident of Minnesota, George Floyd, the National Guard troops are being deployed near the White House. The latest tweet of Bloomberg’s Laura Litvan says, “Medical examiner lists Floyd's death a homicide, says heart stopped while police restrained him and compressed his neck.”
Another one from Bloomberg, Janifer Jacobs said that the White House asked staff to leave by 04:00 PM as protestors amassed nearby.
News of active duty military officers moved to national capital takes rounds whereas the National Guard troops are on duty near the White House.
Identifying the severity of the problem, US President Donald Trump will be speaking at 10:30 PM GMT on Monday from the Rose Garden.
Amid the tensed play, the S&P 500 Futures mark mild losses of 0.10% to 3,050 by the press time.
It’s worth mentioning that the market’s cheered risk-on sentiment the previous day. While US President Trump’s refrain from levy fresh sanctions on China during Friday’s conference gained many accolades, hopes of further stimulus by major central banks and the optimism surrounding the economic restart seem also to have played their roles.
Considering the lack of major data/events from Japan, traders will keep eyes on the geopolitical updates for fresh impulse.
Technical analysis
Bulls are less likely to enter unless the pair breaks 108.10 resistance that has been compressing the pair’s moves since mid-April. On the contrary, the bears are also less interested in an entry unless the quote breaks a three-week-old support line, at 107.15 now.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
