USD/JPY stays in tight range below 112 despite renewed trade optimism

  • US Treasury Secretary says China trade talks are nearing final stage.
  • EU nations agree to start trade negotiations with US.
  • US Dollar Index stays below 97 ahead of NY Fed’s Manufacturing survey.

After advancing to a daily high of 112.10 during the Asian session, the USD/JPY pair failed to preserve its momentum and retraced its daily gains. As of writing, the pair was losing 5 pips on the day at 111.95.

While speaking to reporters at the IMF headquarters in Washington over the weekend, the U.S. Treasury secretary, Steven Mnuchin, said that the U.S. and China trade negotiations were approaching the final stage to boost the sentiment at the beginning of the week. The risk-on mood allowed Japan’s Nikkei 225 to close the day more than 1% higher and weighed on the safe-haven JPY.

Additionally, the European Union (EU) Trade Commissioner Cecilia Malmstrom announced that EU nations agreed to start trade negotiations with the U.S. However, European stocks are staying relatively calm in the session suggesting that the risk-sentiment has turned neutral ahead of the NA session.

Meanwhile, the US Dollar Index is fluctuating in a very tight range below the 97 mark, not providing any directional clues either. The NY Fed’s Empire State Manufacturing Index will be the only data release from the U.S., which is unlikely to receive a significant market reaction.

Technical levels to consider

With a daily close above 112 (daily high/Apr. 12 high) the pair could target 112.60 (Dec. 20 high) and 113.35 (Dec. 10 high). On the downside, supports align at 111.90 (daily low), 111.50 (200-DMA) and 111.15 (50-DMA).

Articles You May Like

Japan February final leading indicator index 97.1 vs 97.4 prelim
Oil continues to be the breakout story of 2019 so far
How to Determine a Bull or Bear Market
SIMPLE process to find great Forex trades | EURGBP trade idea
📈 : Forex Trading Video For Beginners – Live FX Stream by Forex.Today

Leave a Reply

Your email address will not be published. Required fields are marked *