- USD/JPY: making fresh highs at the start of the week, reclaiming the 111 handle.
- USD/JPY: eyes will turn to FOMC minutes for the week ahead.
USD/JPY has been up to test space on the 111 handle having posted a high of 111.05 so far in the Tokyo open, extending the risk-on opening bid this week on following the trade-war headlines.
At the start of the Asian session, USD/JPY opened with a bullish gap on headlines that US Treasury Secretary, Mnuchin, had announced in a television interview that the US is putting the trade war with China on hold. "Right now, we have agreed to put the tariffs on hold while we try to execute the framework," Mnuchin said in the television interview on Saturday.
Eyes on 111.50
So, the threatened sweeping tariffs on Chinese goods would not be imposed while the negotiations on a bilateral trade deal continue. USD/JPY slipped from 111.00 to lows around 110.60 on Friday while US Treasury yields fell amid jittery early NY trade and a lack of clarification around NAFTA and talks between China and the US. The risk-on sentiment at the start of this week is making back lost ground for the pair with eyes towards higher barrier levels around 111.50. For the week ahead, the FOMC minutes will be a key highlight.
The week ahead data preview: eyes on FOMC minutes - Nomura
USD/JPY levels
USDJPY: The short-term momentum indicators look rather heavy
Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, technical indicators retreated from overbought readings but stabilized well above their mid-lines: "the pair keeps developing above bullish 100 and 200 SMA, indicating that any decline will likely remain corrective as long as the pair remains above the 109.60 level." Meanwhile, a close above the level over consecutive days is needed to put eyes back on the 112.30's, (Fibos at 112.22/33) 111.50 needs to be broken first as being another potential option barrier.
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 clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.