USD/JPY: Tokyo open responds to recent risk-on, greenback strength


  • The US Dollar strength and upbeat earnings report escalated the recent recovery.
  • Second-tier data from the US and Japan are in the focus for now.

The USD/JPY pair is on the bids around the intra-day high of 109.92 as Tokyo open reacts to the latest change in the market’s risk sentiment and the US Dollar (USD) strength on early Friday.

Even if the US and China continue to be at loggerheads over trade after Trump administration’s protectionist measures, comments from the US Commerce Secretary Wilbur Ross that they’re getting to the core of talks with China triggered market optimism off-late.

Adding to the quote’s strength could be welcome earnings report from Cisco Systems (CSCO) and Walmart (WMT) together with the greenback increase on the back of upbeat data.

Global equity indices like DJI30, Nasdaq and S&P500 all closed in positive territory.

Portraying the shift in market mood, the US 10-year government bond yield grew 2 basis points to 2.40% on late-Thursday and is holding the same level during press time.

In addition to observing risk events like the US-China trade story and the US-Iran developments, investors might also emphasize on Japan’s April month tertiary industry index and May month Michigan consumer sentiment index from the US.

While Japan data may post -0.4% against -0.6% previous, the US consumer sentiment gauge could rise to 97.5 from 97.2 earlier.

Technical Analysis

A successful break of 110.00 becomes prerequisite for the buyers to aim for 100-day simple moving average (SMA) level of 110.50. However, 110.80 and 111.10 level including 50-day SMA might challenge the bulls then after.

Alternatively, 109.50 and 109.00 could be on the seller’s radar during pullback ahead of looking at 108.80 and 108.50.

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 remains on the back foot amid ongoing trade concerns

EUR/USD is trading around 1.1150, the lowest in over two weeks. Markets are worried about US-Sino trade tensions as US companies stop working with China's Huawei. European elections are warming up.

EUR/USD News

GBP/USD consolidates its losses amid Brexit pessimism

GBP/USD is trading in the low 1.2700s, close to the lowest since January. UK PM May is set to present a new plan after cross-party talks failed and as calls for her to quit mount.

GBP/USD News

USD/JPY off multi-day tops, looks to test 110.00 ahead of Fedspeak

Japanese growth optimism in play as risk-on fades amid looming US-China trade risks. Eyes on risk sentiment, trade developments and Fed speak for fresh directives.

USD/JPY News

Gold aims to revisit 9-month old support-line near $1272

Gold is on its third negative trading day as it seesaws near $1276.50 ahead of the European open on Monday. Pessimism surrounding the US-China and the US-Iran relations could limit the bullion’s decline near trend-line support.

Gold News

Cryptos stage a Sunday surge, levels to watch – Confluence Detector

Cryptocurrencies have enjoyed a massive comeback early on Sunday, recovering most losses. The cleanup seen ahead of the weekend may be over, and it is time to look up to higher levels. Here are the levels to watch according to the Confluence Detector.

Read more

Majors

Cryptocurrencies

Signatures