- USD/JPY extends the losses amid risk reset.
- Tokyo inflation data remains largely unchanged, core inflation matches forecast.
- Coronavirus spreads in the US, House voting on COVID-19 bill is in focus.
While following mostly unchanged Japan’s inflation data, USD/JPY extends the previous day’s declines to 109.25 before a few minutes of the Tokyo open on Friday.
Tokyo Consumer Price Index (CPI) for March reprinted the previous 0.4% YoY figures while stepping behind the 0.5% forecast. The CPI ex Food, Energy matched prior and expectations of 0.7% while the CPI ex-Fresh Food matched the consensus of 0.4% versus 0.5% prior.
Also read: Tokyo area march overall cpi +0.4 pct YoY
The coronavirus (COVID-19) pandemic has been spreading speedily in the US off-late. The world’s largest economy recently crossed China with more than 81,000 cases of the virus. The epidemic has already fuelled the US Jobless Claims, which rose from 282K (revised) to 3,283K. Even so, the CNBC came out with the news, while relying on the New York Mayor Bill De Blasio, to suggest that the half a million New Yorkers will be unemployed soon.
While the news recently probed the risk-takers, overall trade sentiment remained positive the previous day with Wall Street marking the third day of gains.
Also challenging the risk tone could be the news from Saudi Arabia that downed Houthi drones.
On the positive side, US President Donald Trump reiterated nearness to the $2 trillion aid package, which passed through the Senate on Thursday and will be voted in the House today. The Republican leader also mentioned that he will have a call with China’s President XI Jinping and talk about the virus with this.
Although House voting on the US COVID-19 Bill will be the key, US Michigan Consumer Sentiment and virus updates will also be important to follow.
A daily close beyond 111.70 becomes pre-requisite for the pair to recall buyers targeting February month top near 112.25, until then 21-day SMA level of 107.80 remains on the sellers’ radar.
Additional important levels
|Today last price||109.34|
|Today Daily Change||-1.87|
|Today Daily Change %||-1.68%|
|Today daily open||111.21|
|Previous Daily High||111.68|
|Previous Daily Low||110.76|
|Previous Weekly High||111.51|
|Previous Weekly Low||105.15|
|Previous Monthly High||112.23|
|Previous Monthly Low||107.51|
|Daily Fibonacci 38.2%||111.11|
|Daily Fibonacci 61.8%||111.33|
|Daily Pivot Point S1||110.75|
|Daily Pivot Point S2||110.29|
|Daily Pivot Point S3||109.82|
|Daily Pivot Point R1||111.68|
|Daily Pivot Point R2||112.14|
|Daily Pivot Point R3||112.6|
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.