USD/JPY peaking around 110 the figure as focus shifts to troubles ahead


USD/JPY has been uneventful in subdued markets that have already priced in the 'phase-one' deal between the US and China. USD/JPY sits below the 110 handle around 109.91 and between 109.78/01. 

There is little left for markets to lean against in this event considering the clear shortfalls of the agreement. "The current trade deal has no provision to limit Chinese subsidies for state owned industries. From a US perspective, this is seen as being largely responsible for ‘excess’ steel and aluminium production which impacts a broad range of sectors in the US including aircraft and semi-conductors," analysts at Rabobank noted, warning that the heightened concerns remain about cybersecurity and digital trade in addition to the enforcement of China’s Phase 1 commitments regarding intellectual property rights.

"We see it as enviable that tensions between the two nations are set to rise again. This has the potential to impact market expectations about world growth, reduce risk appetite and increase demand for the safe haven JPY."

Troubles ahead?

Focus is now on the phase-two deal, but speculation in the noise will likely take a back seat to a focus on central banks again at this juncture. There is beliefe that the US could be heading for a recession which should see the Fed cut interest rates sharply. As its stands, there are no calls for a move from the central bank this year, not as far as the dot ply suggests, but calls for fiscal stimulus should rise eventually which would be a weight in the US dollar going forward. As far as the Bank of Japan is concerned, JPY’s function as a safe haven can limit the day to day influence of Japanese policymakers on the exchange rate. Should the markets get a hint of stumbling blocks on the trade front, be it between the US and EU or China and the US, domestic issues could once again take a back seat to geopolitics, benefitting the yen.

For now we expect the JPY to be buffeted mostly by changing levels of risk appetite rather than domestic news. Consequently we are looking for a moderately stronger JPY to emerge during the course of the year,

– analysts at Rabobank explained. 

USD/JPY levels

More to come...

USD/JPY

Overview
Today last price 109.88
Today Daily Change -0.08
Today Daily Change % -0.07
Today daily open 109.96
 
Trends
Daily SMA20 109.17
Daily SMA50 109.04
Daily SMA100 108.42
Daily SMA200 108.59
 
Levels
Previous Daily High 110.21
Previous Daily Low 109.85
Previous Weekly High 109.69
Previous Weekly Low 107.65
Previous Monthly High 109.8
Previous Monthly Low 108.43
Daily Fibonacci 38.2% 110.08
Daily Fibonacci 61.8% 109.99
Daily Pivot Point S1 109.8
Daily Pivot Point S2 109.65
Daily Pivot Point S3 109.44
Daily Pivot Point R1 110.16
Daily Pivot Point R2 110.37
Daily Pivot Point R3 110.52

 

 

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

Latest Forex News

Editors’ Picks

EUR/USD pressured under 1.11 amid virus fears, ahead of the ECB

EUR/USD is trading below 1.11, under pressure as fears of the coronavirus weigh on markets. The ECB is set to leave rates unchanged and provide views about the current economic environment. 

EUR/USD News

GBP/USD consolidates gains above 1.31 after parliament seals Brexit

GBP/USD is trading above 1.31, consolidating its gains. The House of Lords gave its final seal to Brexit. Speculation ahead of the BOE's decision continues after upbeat data diminished chances for an imminent move.

GBP/USD News

Forex Today: Coronavirus fears spread and weigh on markets, Aussie surges, all eyes on the ECB

Chinese authorities have shut down access links to Wuhan, the large provincial capital where the coronavirus originates from. The news, coming ahead of the Chinese Lunar New Year, is weighing on markets. 

Read more

WTI hits 7-week low, potential bull RSI divergence on 1H

WTI oil fell to $55.68 soon before press time, the lowest level since Dec. 3, having declined by 3.73% on Wednesday. The black gold has found acceptance below $56.60, which is the 61.8% Fibonacci retracement (one of the golden ratio) of the rally from $51.03 to $65.62.

Oil News

USD/JPY drops to fresh eight-day lows near 109.50

USD/JPY extends losses and trades close to an eight-day low near 109.50 in a relatively risk-off environment, with the media headlines full of the coronavirus as it spreads internationally. Bears can look to the golden ratio around mid-108s.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures