USD/JPY reverses course, rises to 108.00 as Asian stocks turn positive


  • USD/JPY recovers to 108.00 as Asian equities turn positive.
  • BOJ's Kuroda assured ample liquidity for markets, inviting offers for the anti-risk yen. 
  • Sustained risk recovery looks likely with markets pricing Fed rate cut. 

The anti-risk Japanese yen is losing ground, allowing a bounce in USD/JPY with the Asian markets recovering the lost ground. 

Risk recovery

The major Asian stocks, which were down by more than 1% earlier today, are now flashing green. The Shanghai Composite is currently trading 1.45% higher, while Japan's Nikkei, South Korea's Kospi are adding 0.6% each. 

The futures on the S&P 500 are sidelined, having dropped by 1.3% in early Asia. The equities changed course after the Bank of Japan (BOJ) governor Haruhiko Kuroda said the central bank is closely monitoring the situation in the financial markets and would provide ample liquidity to ensure financial stability. 

The USD/JPY pair also recovered from the session low of 107.25 with stocks and clocked a session high of 108.04 soon before press time. The pair is currently trading near 108.00. Kuroda's comments overshadowed the dismal China data released at 01:45 GMT. China's Caixin manufacturing purchasing managers’ index (PMI), which surveys small and medium-sized export-oriented units, came in at 40, indicating a contraction in the activity. Markets were expecting the PMI to print at 45.7 following January's 51.7 reading. 

Looking forward, the selling interest in yen may strengthen, yielding further gains in USD/JPY if the risk recovery persists in Europe. 

That looks likely as Kuroda's risk-supportive comments are accompanied by expectations for fresh easing by other central banks. For instance, the Federal Reserve (Fed) is expected to cut rates by 25 basis points in March. Some investment banks think the Fed could deliver a 50 basis point cut this month, followed by a 25 basis point cut in April. Meanwhile, Westpac and National Bank of Australia think the Reserve Bank of Australia will cut rates by 25 basis points on Tuesday. 

Technical levels

USD/JPY

Overview
Today last price 108.00
Today Daily Change 0.08
Today Daily Change % 0.07
Today daily open 107.89
 
Trends
Daily SMA20 110.03
Daily SMA50 109.58
Daily SMA100 109.22
Daily SMA200 108.41
 
Levels
Previous Daily High 109.89
Previous Daily Low 107.51
Previous Weekly High 111.68
Previous Weekly Low 107.51
Previous Monthly High 112.23
Previous Monthly Low 107.51
Daily Fibonacci 38.2% 108.42
Daily Fibonacci 61.8% 108.98
Daily Pivot Point S1 106.97
Daily Pivot Point S2 106.05
Daily Pivot Point S3 104.59
Daily Pivot Point R1 109.35
Daily Pivot Point R2 110.81
Daily Pivot Point R3 111.73

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD is trading closer to 1.1750, paring its recovery from earlier in the day as the safe-haven dollar is bid. US Consumer Sentiment missed estimates with 72 points in September. The financial woes of China's Evergrande are weighing on sentiment.

EUR/USD News

GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 

GBP/USD News

XAU/USD surrenders intraday gains, drops closer to $1,750 level

Gold struggled to preserve its intraday gains and dropped to the lower end of the daily trading range during the early North American session. 

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more

Forex MAJORS

Cryptocurrencies

Signatures