USD/JPY looks to post first daily close above 112 since April 2019

  • JPY struggles to find demand as a safe-haven despite sour mood.
  • US Dollar Index continues its climb toward 100.
  • Coming up: National CPI and All Industry Activity Index from Japan.

After rising above the 112 handle for the first time since April 2019 on Thursday, the USD/JPY fell to a session low of 111.70 but didn't have a difficult time turning north, once again. As of writing, the pair was up 0.65% on the day at 112.10.

Does risk aversion hurt JPY?

Although the poor performance of major global equity indexes and the US Treasury bond yields pointed out to a risk-averse market environment, the JPY failed to attract investors as a safe-haven. 

Consecutive disappointing macroeconomic data releases from Japan and the exposure of its economy to the coronavirus outbreak seem to be forcing the JPY to lose its haven status.

Explaining this change in markets' perception, "we would link the turnaround in the behaviour of the yen with three overlapping factors," Rabobank analysts said and explained:

"The first is that the impact of the coronavirus is very close to home, the second is the step-up in fears that Japan could fall into recession in the current quarter and the third is that the USD can offer both liquidity and yield. For these reasons the USD can offer many investors a more practical safe haven.”

On the other hand, the greenback preserves its strength against its rivals with the US Dollar Index stretching higher toward the critical 100 handle and allows the bullish momentum to remain intact. The data published by the Federal Reserve Bank of Philadelphia on Thursday showed that the economic activity in the regional manufacturing sector expanded at a robust pace to provide an additional boost to the USD.

During the early trading hours of the Asian session on Friday, National CPI and All Industry Activity Index data from Japan will be looked upon for fresh impetus. However, even if the data come in better than market expectations, the JPY's recovery against the greenback is likely to be short-lived in the current market environment.

Technical levels to watch for


Today last price 112.04
Today Daily Change 0.80
Today Daily Change % 0.72
Today daily open 111.24
Daily SMA20 109.55
Daily SMA50 109.44
Daily SMA100 109.02
Daily SMA200 108.39
Previous Daily High 111.59
Previous Daily Low 109.85
Previous Weekly High 110.14
Previous Weekly Low 109.56
Previous Monthly High 110.29
Previous Monthly Low 107.65
Daily Fibonacci 38.2% 110.93
Daily Fibonacci 61.8% 110.51
Daily Pivot Point S1 110.2
Daily Pivot Point S2 109.15
Daily Pivot Point S3 108.45
Daily Pivot Point R1 111.94
Daily Pivot Point R2 112.64
Daily Pivot Point R3 113.69



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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Editors’ Picks

EUR/USD extends slump after NFP shows massive job loss

EUR/USD is trading below 1.08, down on the day. The Non-Farm Payrolls report has shown a loss of 701,000 jobs, worse than expected. The ISM Non-Manufacturing PMI surprised to the upside with 52.5 points. 


GBP/USD drops below 1.23 amid sour mood, after UK data

GBP/USD has dropped below 1.23 as the market mood sours. Final UK Services PMI dropped to 34.5 points, worse than expected.  


NFP Quick Analysis: 701K jobs lost only be tip of the iceberg, why King Dollar is ready for coronation

The US lost 701,000 jobs in March, the worst in 11 years. The Non-Farm Payrolls figures are lagging the fast-moving events. Wage growth is also skewed and should be ignored. The safe-haven dollar has room to rise. 

Read more

WTI trades in three-week’s highs near $26.50 a barrel

WTI is jumping from multi-year lows following the US President Trump’s tweet of yesterday (Thursday) suggesting a Saudi-Russian deal was on the pipeline.

Oil News

Gold remains confined in a range, moves little post-NFP

Gold extended its sideways consolidative price action around the $1615 region and had a rather muted reaction to the US monthly employment details

Gold News