USD/JPY Forecast: Resurged demand for safe-haven assets fxstreet.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from fxstreet.com Daily Mail and Mail on Sunday newspapers.
4/6/2021 11:49:34 AM GMT | By FXStreet Team
The USD/JPY pair keeps recovering from Monday’s slump, currently trading in the 110.50 price zone as the dollar recovers, but it needs to rise above 110.60 to gain bullish potential, FXStreet’s Chief Analyst Valeria Bednarik briefs.
USD/JPY is mildly positive in the near-term
“Japan published February Labor Cash Earnings, which printed at -0.2% YoY, and Overall Household Spending, which fell by 6.6% YoY, much worse than the -2.1% expected. The US has a light macroeconomic calendar, as it will only publish April IBD/TIPP Economic Optimism and February JOLTS Job Openings.”
“From a technical point of view, the near-term picture indicates that further advances are unlikely at the time being. In the 4-hour chart, the pair is unable to surpass a bearish 20 SMA, while technical indicators head higher but within neutral levels.”
3/9/2021 12:15:44 PM GMT | By FXStreet Team
The USD/JPY pair peaked at 109.19 during the Asian session, now trading in the 108.70 price zone. According to FXStreet’s Chief Analyst Valeria Bednarik, the corrective decline may continue towards 107.70.
Key quotes
“Japan published the Q4 Gross Domestic Product, which resulted at 2.8%, below the expected 3%. Overall Household Spending in January contracted by 6.1%, worse than the -2.1% expected. Finally, February Machine Tool Orders were up 36.7% from 9.7% in January.”
“The USD/JPY pair has corrected extreme overbought conditions in the near-term, but its bearish potential is well-limited.”
“The slide may continue towards 107.70 on a break below the 108.40 support level.”