USD/JPY reports losses as S&P 500 futures drop, Kuroda talks balance sheet taper

  • Yen in demand on signs of risk aversion in the US equities.
  • BOJ's Kuroda talks about ways to taper the balance sheet size.

The Japanese Yen is pushing higher against the greenback, tracking a 0.35 percent decline in the S&P 500 futures.

As of writing, the USD/JPY pair is trading at 106.42 - down 0.16 percent on the day. The fear that Trump's broader tariffs on Chinese imports could lead to full-fledged trade war could be hurting the risky assets.

Meanwhile, Bank of Japan (BOJ) head Kuroda, while speaking in parliament, reiterated that the central bank is still far from 2 percent inflation goal, but at the same time assured markets that there are plenty tools in the banks' arsenal to trim the balance sheet size without causing turbulence in the markets. Of late,  Kuroda has been making subtle references to balance sheet taper.

However, so far, Kuroda's taper talk has not had a big influence on the JPY pairs.

Looking ahead - the focus remains on the action in the stock markets and China's response to tariff talk.

USD/JPY Technical Levels

A break below 106.25 (previous day's low) would open doors for a drop to 105.55 (Feb. 16 low) and 105.25 (March 2 low). On the higher side, only a daily close above 107.00 would turn the tide in favor of the bulls. The pair could then test resistance at 107.91 (Feb. 21 high) and 108.28 (Jan. 26 low).     

15M Strongly Bearish Neutral Expanding
1H Bearish Oversold Low
4H Bullish Neutral Shrinking
1D Bearish Neutral Low
1W Bearish Neutral High


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.