- US-China trade optimism continued weighing on the JPY’s safe-haven status.
- The USD/JPY pair once again struggled to find acceptance above 200-day SMA.
The USD/JPY pair surrendered a major part of its early gains to two-week tops and is currently placed near the lower end of its daily trading range, just below the 109.00 handle.
The pair added to the overnight positive move and gained some follow-through traction through the Asian session on Tuesday, albeit once again struggled to find acceptance above the very important 200-day SMA.
Bulls struggle to hold the pair above 200-DMA
Renewed optimism over a possible trade deal between the United States and China continued weighing on the Japanese yen's perceived safe-haven status and was seen as one of the key factors driving the pair higher.
It is worth recalling that China's announcement over the weekend to tighten intellectual property protection rules reaffirmed that the world's two largest economies might be very close to a "phase one" trade deal.
This coupled with possibilities of some short-term trading stops being triggered above the 109.00 handle (200-DMA) provided an additional boost and further collaborated to the momentum to an intraday high level of 109.21.
The uptick, however, lacked any strong bullish conviction, rather quickly ran out of the steam amid increasing conflict over the Hong Kong Human Rights and Democracy Act, which was unanimously passed by the US Senate last week.
It will now be interesting to see if the pair is able to attract some dip-buying at lower levels or repeated failures above a technically significant moving average point to the emergence of some fresh selling pressure.
Moving ahead, Tuesday’s US economic docket – featuring the release of the Conference Board's Consumer Confidence Index and Richmond Manufacturing Index – will now be looked upon for some meaningful trading opportunities.
Technical levels to watch
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
EUR/USD extends gains above 1.0700, focus on key US data
EUR/USD meets fresh demand and rises toward 1.0750 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
USD/JPY keeps pushing higher, eyes 156.00 ahead of US GDP data
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, recapturing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming intervention risks. The focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold closes below key $2,318 support, US GDP holds the key
Gold price is breathing a sigh of relief early Thursday after testing offers near $2,315 once again. Broad risk-aversion seems to be helping Gold find a floor, as traders refrain from placing any fresh directional bets on the bright metal ahead of the preliminary reading of the US first-quarter GDP due later on Thursday.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
Meta takes a guidance slide amidst the battle between yields and earnings
Meta's disappointing outlook cast doubt on whether the market's enthusiasm for artificial intelligence. Investors now brace for significant macroeconomic challenges ahead, particularly with the release of first-quarter GDP data.