- USD/JPY probes intraday high near 105.70, trims the previous day’s losses.
- US dollar regains the bull’s attention as Trump’s statements, virus woes and Brexit fears favor safe-haven buying.
- BOJ’s Kuroda also struck a modest tone at the 62nd Annual Meeting of the National Association for Business Economics.
- Japan’s Preliminary Leading Economic Index for August will be eyed for immediate direction, risk catalysts keep the driver’s seat.
USD/JPY stays mildly positive while taking the bids near 105.70, up 0.04% intraday, amid the initial hour of Tokyo open on Wednesday. The yen pair recently gained bids as the Bank of Japan (BOJ) Governor Haruhiko Kuroda praised economic conditions while also highlighting fears of the coronavirus (COVID-19). It’s worth mentioning that the pair dropped the previous day as US President Donald Trump challenged bipartisan negotiations for the COVID-19 stimulus.
Cautious optimism for Asia…
In his latest statement at the US National Association for Business Economics, reported by Reuters, BOJ Governor Kuroda said, “Asia's economic conditions remain severe but the downturn in growth has been moderate compared with that of other regions.”
Even so, the rush to risk-safety drives the greenback northward amid chatters over the US aid package. Following Trump’s rejection of the talks, US House Majority Leader Mitch McConnell backed the White House leaders’ decision even as House Speaker Nancy Pelosi said that the negotiations were near the outcome.
Fears of the surge in the virus-led deaths from the US and the increased pressure to recall national lockdown on the UK PM Boris Johnson offer additional challenges to the market’s risk tone. Furthermore, the British angst over China’s treatment of Uighur Muslims becomes extra negatives for the mood.
As a result, S&P 500 Futures drop 0.25% even as the US 10-year Treasury yields seesaw near 0.74% after declining over two basis points (bps) the previous day. Further, Japan’s Nikkei 225 declines more than 100 points, down 0.50% intraday, while flashing 23,300 as a quote.
Moving on, the flash readings of Japan’s Coincident Index and Leading Economic Index for August, forecast 76.4 and 89.4 respectively, can offer nearby direction to the pair ahead of the Fed minutes, up for publishing during the US session. It should, however, be noted that the risk catalysts will remain on the driver’s seat and shouldn’t be ignored.
Technical analysis
A daily closing beyond the 50-day SMA level near 105.80 becomes necessary to convince USD/JPY buyers.
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.
Recommended content
Editors’ Picks
AUD/USD holds gains near 0.7000 amid PBOC's status-quo, Gold price surge
AUD/USD is clinging to mild gains near 0.7000 early Monday. The pair benefits from a risk-on market profile, China's steady policy rates and surging Gold and Copper prices. Focus now remains on Fedspeak for fresh impetus.
Gold price hits an all-time high to near $2,440
Gold price (XAU/USD) climbs to a new record high near $2,441 during the Asian trading hours on Monday. The bullish move of the precious metal is bolstered by the renewed hopes for interest rate cuts from the US Federal Reserve (Fed).
EUR/USD gains ground above 1.0850, focus on Fedspeak
The EUR/USD pair trades on a stronger note around 1.0875 on Monday during the early Asian trading hours. The uptick in the major pair is bolstered by the softer Greenback. The Federal Reserve’s Bostic, Barr, Waller, Jefferson, and Mester are scheduled to speak on Monday.
AI tokens could really ahead of Nvidia earnings
Native cryptocurrencies of several blockchain projects using Artificial Intelligence could register gains in the coming week as the market prepares for NVIDIA earnings report.
Week ahead: Flash PMIs, UK and Japan CPIs in focus. RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.