USD/JPY slips back below 108.00 amid fresh risk aversion wave

  • China announces anti-dumping duties, UK-Iran issue getting serious.
  • Greenback trims latest gains amid lack of fresh catalysts, uncertainty over the  trade deal with China.
  • Kuroda’s speech will be in the spotlight.

With the risk-off returning to desks and the US Dollar (USD) trimming recent gains, USD/JPY traders reassess the latest recovery while dragging the pair back below 108.00 during early Monday.

The greenback buyers await fresh clues to extend the previous upside, triggered on the Fed rolling back the odds for an extensive rate hike, as overall view remains bearish for the future monetary policy by the US Federal Reserve.

Adding to the pullback could be latest risk aversion as the UK and Iran tension, due to Iran’s capture of the British oil tankers, escalated after lawmakers from both the sides warned each other wherein Tehran remains ready to stretch tension beyond ships.

Elsewhere, the previously upbeat sounding sentiment concerning the US-China trade deal turns sluggish after Chinese media says that the dragon nation has its own preconditions to buy more of the US agricultural production. Further, trade woes got bitter after Reuters reported that China will levy fresh anti-dumping duties on stainless steel imports from the European Union, Indonesia, Japan and South Korea.

Investors may now turn to the Bank of Japan (BOJ) Governor Haruhiko Kuroda’s speech to take clues of how monetary policy could align with the Prime Minister (PM) Shinzo Abe’s upper house election win and the more likely tax hike. It should also be noted that the Fed officials are on their blackout period and hence trade/political news will grab major market attention.

Technical Analysis

While 21-day exponential moving average (EMA) level of 108.10 acts as an immediate upside barrier, 108.65 comprising 50-day EMA can question the pair’s further advances. On the downside, 107.55 and 107.20 seem nearby supports to watch ahead of targeting 106.80 if holding short positions.

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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Editors’ Picks

EUR/USD pressured below 1.0950 after ADP, ISM beat

EUR/USD has is trading below 1.0950, under pressure. ADP's private-sector jobs report has shown a loss of only 27,000 jobs, far better than expected. The ISM Manufacturing PMI also beat with 49.1 points.


GBP/USD battles 1.24 as UK coronavirus death toll jumps by 31%

GBP/USD is trading around 1.24 The market mood is gloomy as coronavirus continues spreading. The UK's death toll jumped by 31% to 2,352. Markets are digesting US data.


Oil prices are poor predictors of recession

Crude price movement before last five recessions are ambivalent. WTI has fallen 66% since January 7 to its lowest price in 18 years. Previous sharp drops in oil did not anticipate downturns.

Read more

Gold: USD 1600 is the major pivot level but is the retracement over?

Gold has been pulling back up since the recent low on March 16th. It's amazing to think that in these uncertain times the price fell to hit a low to USD 1451.32.

Gold News

WTI drops to $20 area after EIA reports huge increase in US crude oil stocks

Crude oil prices came under renewed selling pressure in the last hour after the weekly report published by the US Energy Information Administration (EIA) showed a huge build-up in crude oil stockpiles.

Oil News