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. 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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Editors’ Picks

EUR/USD chops around amid end-of-month flows, ahead of Trump

EUR/USD is battling 1.11, close to the two-month highs amid choppy trading. Hopes for a fiscal boost in Europe and mixed satisfactory data have supported the currency pair. , Sino-American tensions are rising and investors await President Trump's China announcement.


GBP/USD advances amid US dollar weakness, shrugging off concerns

GBP/USD is trading above 1.23, edging higher amid US dollar weakness and Britain's gradual reopening. Intensifying Sino-American tensions and the Brexit impasse are ignored. 


Cryptocurrencies: $348M in matured derivatives boost the market

Futures and options contracts' expiration brings a wave of volatility to the crypto market. Ethereum takes advantage and attacks resistances in the market dominance chart, Bitcoin goes back. Ripple disappoints despite regaining the third place in market capitalization.

Read more

Canada's economy falls by 8.2% annualized in Q1, better than expected, USD/CAD shakes

The Canadian economy squeezed by an annualized rate of 8.2% in the first quarter of 2020, better than -10% expected. Quarterly, Gross Domestic Product (GDP) squeezed by 2.1%. Most of the downfall occurred in March, with a drop of 7.2%, better than 8.5% projected. 

Read more

WTI drops 4% and eyes $32 mark amid risk-off, weakening demand

The selling pressure around WTI (July futures on Nymex) accelerates following the break below the 33 level, as bears now target the 32 support zone heading into the key US macro data and US President Donald Trump’s response to the Hong Kong issue.

Oil News