USD/JPY stays above 105.50 despite sluggish US T-yields

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 62^nd 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.

Anil Panchal FXStreet

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.

Additional important levels

Overview
Today last price	105.66
Today Daily Change	0.02
Today Daily Change %	0.02%
Today daily open	105.64

Trends
Daily SMA20	105.44
Daily SMA50	105.76
Daily SMA100	106.56
Daily SMA200	107.51

Levels
Previous Daily High	105.78
Previous Daily Low	105.47
Previous Weekly High	105.8
Previous Weekly Low	104.94
Previous Monthly High	106.55
Previous Monthly Low	104
Daily Fibonacci 38.2%	105.59
Daily Fibonacci 61.8%	105.66
Daily Pivot Point S1	105.48
Daily Pivot Point S2	105.32
Daily Pivot Point S3	105.16
Daily Pivot Point R1	105.79
Daily Pivot Point R2	105.94
Daily Pivot Point R3	106.1

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD holds losses near 1.1850 as US, China holidays keep trade muted

EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold remains below $5,050 despite Fed rate cut bets, uncertain geopolitical tensions

Gold edges lower after registering over 2% gains in the previous session, trading around $5,030 per troy ounce during the Asian hours on Monday. However, the non-interest-bearing Gold could further gain ground following softer January Consumer Price Index figures, which reinforced expectations that the Federal Reserve could cut rates later this year.

Week ahead: Data blitz, Fed Minutes and RBNZ decision in the spotlight

The US jobs report for January, which was delayed slightly, didn’t do the dovish Fed bets any favours, as expectations of a soft print did not materialize, confounding the raft of weak job indicators seen in the prior week.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.