USD/JPY backs away from highs

1 April, 2019

US Dollar Index retreats toward 97 area. Nikkei Manufacturing PMI in Japan improves slightly in March. Coming up: Retail sales and manufacturing PMI from the U.S.

The USD/JPY pair started the week with a small bullish gap and climbed higher to touch its best level in more than 10 days at 111.18 before going into a consolidation phase ahead of the macroeconomic data releases from the United States. As of writing, the pair was up 0.15% on the day at 111.

Earlier in the day, the Nikkei Manufacturing PMI in its final reading improved to 49.2 in March from 48.9 in the previous estimate. Other data from Japan revealed that the Tankan Large Manufacturing Index in the first quarter of the year slumped to 12 from 19 and fell short of the market expectation of 14.

In addition to disappointing data, the risk-on mood weighed on the JPY as well. At the moment, Germany's DAX is adding more than 1% on the day while the UK's FTSE is gaining 0.6%. Moreover, the 10-year US T-bond yield is rising by more than 1% to confirm the positive mood.

Later in the day, both the ISM and the IHS Makirt will be releasing their final Manufacturing PMI reports for the U.S. Ahead of the data, the US Dollar Index is retracing last week's rally, staying in the red a little below the 97 mark. 

The pair could find the initial support at 110.90 (daily low/20-DMA) followed by 110.55 (100-DMA) and 110 (psychological level/Mar. 28 low). On the upside, resistances are located at 111.20 (daily high), 111.50 (200-DMA) and 111.90 (Mar. 15 high).


Source   Presented by HYCM
Yen underwhelmed as BOJ jumps on unlimited bandwagon27 Apr, 2020  

The Japanese Yen initially breached the 107.3 level against the US Dollar, only to pare gains, after the Bank of Japan pledged unlimited buying of government bonds...

Buyers might be gaining the upper hand30 Mar, 2020  

The USDJPY currency pair, on the D1 time-frame, made a brief descending interchange until March 9 when a lower bottom was recorded at 101.178...

Japanese yen flies into the abyss19 Feb, 2020  

Macro data published this week of the Japanese economy finally hit the Japanese yen: at the beginning of the week it was a report on GDP, today in terms...


Yen Gains as Shinzo Abe Launches $121 Billion Stimulus6 Dec, 2019  

The Japanese yen strengthened slightly against the EUR as the markets reflected on the new stimulus package by Shinzo Abe. The $121 billion stimulus...

Currency Point: USDJPY multi-time framed29 Nov, 2019  

There are further signs in currencies that risk trading is facing fatigue and there is growing signs a short period...

USD/JPY eases from 2-month tops16 Oct, 2019  

Fading safe-haven demand continued weighing on the JPY and provided a goodish lift on Tuesday. The ongoing slide in the US bond yields...


Yen flexes bullish muscles3 Oct, 2019  

Everyone wanted a piece of the Japanese Yen on Wednesday after disappointing ADP payroll data from the United States and gloomy outlook on trade...

Yen shunned as risk appetite improves11 Sep, 2019  

The Japanese Yen is entangled in losing battle against every single G10 currency today as risk appetite improves on trade optimism and...

USD/JPY recovers to 107 area25 Jun, 2019  

10-year US T-bond yield extends slide, drops below 2%. US Dollar Index stays calm near the 96 mark. Fed's Williams & Bostic, FOMC Chairman Powell...