- The US manufacturing gauges continue to point to continuous expansion.
- All eyes are on the US Non-Farm Payroll (NFP) is scheduled for this Friday.
The USD/JPY is trading at around 106.19 slightly lower on Easter Monday as the market is driven by sentiment and renewed fears of trade wars between the US and China. The Asian superpower said earlier on Monday that it imposes trade tariffs on pork and fruits from the United States.
The trade war is likely to steal the spotlight of the market as only second-tier indicators are scheduled for later on Monday or early on Tuesday. Minneapolis Federal Reserve Bank President Neel Kashkari is scheduled to speak at a Student Town Hall in Duluth, Minnesota at 22:00 GMT while monetary base is expected to increase 9.6% y/y in March in Japan.
Most investors have their eyes set on the US Non-Farm Payroll (NFP) report due this Friday will provide much volatility across markets and the USD/JPY pair.
Earlier in the US session, the Purchasing Managers Index (PMI) from IHS/Markit rose to 3-year high in March while, the ISM manufacturing PMI numbers in March came in at 59.3, confirming the rise of the manufacturing sector for the 107th consecutive month. The ISM Prices Paid in March increased to 78.1 from 74.2 in February suggesting that the underlying inflation is grinding higher in the US economy, especially as the price of oil is going up.
USD/JPY 4-hour chart
The USD/JPY is currently supported by both the 100 and 200-period simple moving average. Support is seen at 106-106.15 and 105.31 swing low. If the bulls manage to break above the 107 handle resistance, the next scaling point would likely become the 107.90-108 swing high.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD under pressure below 1.0400 on persistent USD strength
EUR/USD remains deep in the negative territory below 1.0400 on Tuesday, erasing a portion of Monday's gains. The pair is undermined by risk aversion and the persistent US Dollar demand, fuelled by US President Trump's tariff threats.
GBP/USD stays below 1.2300 after UK employment data
GBP/USD stays under bearish pressure and trades below 1.2300 on Tuesday as the USD preserves its strength following US President Trump's tariff threats. The data from the UK showed that the ILO Unemployment Rate edged higher to 4.4% in the three months to November.
Gold trades at multi-month highs above $2,720
Gold gathers bullish momentum and trades at its highest level since early November above $2,720 on Tuesday. The benchmark 10-year US Treasury bond yield is down more than 1% below 4.6% following US President Trump's tariff threats, helping XAU/USD hold its ground.
Bitcoin fails to sustain the $109K mark after Trump’s inauguration
Bitcoin’s price steadies above the $102,000 mark on Tuesday after reaching a new all-time high of $109,588 the previous day. Santiment’s data shows that BTC prices quickly corrected, as social media showed major greed and FOMO among the traders in Bitcoin after President Donald Trump’s inauguration.
Prepare for huge US trade changes as Trump goes America first
You can be sure that big changes are coming as far as US trade is concerned, even if we didn't get any new tariffs on President Trump's first day in office. A comprehensive investigation into US trade relationships was initiated via a memorandum. China, Canada, and Mexico are clearly in the immediate firing line.
Trusted Broker Reviews for Smarter Trading
VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.