Free Trial

USD/JPY Extends Pullback From Multi-Month Highs/200-DMA

JPY

USD/JPY continued to unwind its recent rally yesterday, extending its move away from the 200-DMA, an important near-term resistance. The rate registered some gains in Asia-Pac hours, but dived into the WMR fix amid broader greenback sales.

  • Japanese earnings accelerated their decline in Dec, but fell at a slower pace than forecast. Still, the drop in wages was the steepest since Jun 2015.
  • FinMin Aso informed that the cabinet has approved Y1.1tn of reserve fund use, which will be used for Covid-19 response measures.
  • A Jiji report suggested that the gov't is considering lifting the state of emergency in Aichi, Gifu & Fukuoka prefectures.
  • USD/JPY trades -5 pips at Y105.18 at typing. A break under Feb 4 low of Y104.98 would open up Jan 11 high of Y104.40, a recent breakout level. Bulls keep an eye on the aforementioned 200-DMA at Y105.56 & Feb 5 high of Y105.77, followed by the 1.50 projection of the Jan 6 - 11 swing at Y106.05.
  • Looking ahead, Japanese machine tool orders (p) are due later today.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.