USD/JPY sticks to gains near multi-week tops, just above mid-110.00s

   •  Gains traction for the second straight session amid the continuation of the recent USD rally.
   •  US-China trade optimism/risk-on mood dent JPY’s safe-haven demand and remains supportive.

The USD/JPY pair built on the overnight goodish up-move and climbed to over six-week tops, further beyond mid-110.00s on Tuesday.

Despite increasing chances of another partial US government shutdown, the US Dollar stood tall near 2019 high and was seen as one of the key factors driving the pair higher for the second consecutive session.

This coupled with renewed optimism over a possible resolution of the US-China trade disputes and the prevalent risk-on mood further dampened the Japanese Yen's relative safe-haven status and remained supportive.

Investors' risk-appetite got a boost following White House senior counsellor Kellyanne Conway's comments on Monday, saying that the US President Donald Trump may still meet Chinese President Xi Jinping in the near future and that it looks like the US and China are getting closer to deal. 

Hence, this week's high-level US-China trade talks, along with important US macro releases will play a key role in driving the broader market risk sentiment and eventually determine the pair's next leg of a directional move.

In the meantime, today's scheduled speeches by several FOMC officials, including the Fed Chair Jerome Powell will also be looked upon for some meaningful impetus and short-term trading opportunities.

Technical outlook

Omkar Godbole, FXStreet's own Analyst and Editor explains, “a convincing break above the bearish 10-week MA of 110.57 may remain elusive, as the RSI on the hourly chart is beginning to diverge in favor of the bears. The RSI on the 4-hour chart is also reporting overbought conditions with an above-70 print.” 

“Put simply, the 10-week MA hurdle is likely to remain intact and the psychological support of 110.00 could be put to test again. The pair, however, could make a move above 111.00 by NY close if the yield differentials spike in the USD-positive manner,” he added further.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD steady around 1.1240 in ultra-thin holiday's trading

The EUR/USD pair bounced some 20 pips from its weekly low during the Asian session, now mute around 1.1240 with most market's off today. Softer-than-expected US housing data passed unnoticed.


GBP/USD battling around 1.3000

The GBP/USD pair is heading nowhere fast after bottoming for the week at 1.2978, amid lack of progress in Brexit negotiations.  Encouraging UK data failed to trigger Pound's demand.


USD/JPY: On track to close in the middle of its 50-pip weekly range below 112

The USD/JPY pair remains frozen below the 112 handle in the NA session and there is no reason for it to make a meaningful move as investors are already enjoying the Easter holiday.


The Tale of the Prosperous Consumer-US Retail Sales

American consumers asserted the right to spend in a grand fashion in March boosting retail sales to the fastest expansion in 18 months as the booming job market put the shutdown marked holiday season to rest.

Read more

Gold Forecast: Eyes 8-month rising trendline after weakest weekly close since December

The troy ounce of the precious metal lost around $17 this week and now looks to record its lowest weekly close since the end of December near $1275.

Gold News