- Trump plans to impose tariffs on China, reviving trade war fears.
- USD/JPY is trading at the lower end of its multi-week range.
The USD/JPY is trading at around 105.73 down 0.28% on the day as the White House takes steps to restrict Chinese investment and to put tariffs on $50B in Chinese imports for stealing technology. Any protectionist news can be interpreted by the market as USD bearish. However, so far the USD seems quite supported with the dollar index trading at 89.83 but showing signs of bull exhaustion at the time of writing.
In the US, Friday will see FOMC´s Member Bostic delivering a speech at 12.10.
Coming up next in Japan is the National CPI dataset which is not as popular as the Tokyo CPI.
Earlier in the US Session, we saw the Initial Jobless Claims for the week ended March 16th coming worse-than-expected while the Continuing jobless claim came in at 1.828m better than anticipated. The Housing Price Index and the Markit Manufacturing PMI in March came both above expectation.
USD/JPY 1-hour chart
The bulls found support at the 105.26 level earlier in the European session and the market managed to bring it up to 105.80 before finding resistance. The bulls broke above the 20 SMA which is seen as an encouraging sign for further higher prices.
USD/JPY 5-min chart
The USD/JPY on the 5-minute chart has formed a wedge pattern at the 105.80 resistance. The structure implies that we could see some resistance at this level. However, if the wedge fails we might have a breakout equal to the bull leg we say today from the bottom at 105.26. Support is seen at 105.50 previous supply zone and 105.30 previous swing low. Resistance is seen at 106 previous high and at 106.20 previous supply zone.
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 treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.