USD/JPY turns positive, will it end 5-day losing streak?

USD/JPY recovered from the early Asian session low of 112.26 to trade marginally positive on the day around 112.60 levels.

The treasury yields are trading flat; hence the recovery in the Dollar-Yen could be attributed to anti-EU candidate Marine Le Pen’s loss in the French Presidential elections.

Focus on Fed speak

The light economic calendar is likely to be overshadowed by the Fed speak - New York Fed President William Dudley is set to speak in London, while Boston Fed President Eric Rosengren will speak in Indonesia. Kansas City Fed President Esther George and Cleveland Fed President Loretta Mester are scheduled to speak as well.

The treasury yields could rise, leading to USD strength if the policymakers talk about the potential for four rate hikes in 2017 and/or reduction in the size of the balance sheet this year. It is worth noting that the reduction in the size of the balance sheet is likely to be seen as a quasi rate hike.

Other than the Fed speak, the pair remains at the mercy of the action in the stock markets.

USD/JPY Technical Levels

A break above 112.90 (5-DMA), above which the resistance at 113.10 (100-DMA) and 113.58 (50-DMA) could be put to test. On the other hand, a breakdown of support at 112.26 (session low) could yield a sell-off to 112.00 (zero figure) and possibly to 111.69 (Feb 28 low).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Neutral	High
1H	Bullish	Neutral	Expanding
4H	Bullish	Oversold	Low
1D	Bullish	Neutral	Low
1W	Bearish	Neutral	Low
Updated Mar 21, 01:45 GMT

Share: Feed news

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.