USD/JPY remains on the back foot below 109.50 after Japan inflation data

  • 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.

Technical analysis

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
Daily SMA20 107.73
Daily SMA50 109.01
Daily SMA100 109.03
Daily SMA200 108.32
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



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