Wobbly Yen Pressing On 111
MarketPulse | Mar 31, 2021 08:23AM ET
The Japanese yen continues to lose ground this week. Currently, USD/JPY is trading at 110.67, down 0.30% on the day.
Earlier in the day, USD/JPY touched a high of 110.96. This was within a whisker of the 111 line, which has held since March 2020.
h2 Dollar having its way with the yen/h2The yen has been a punching bag for the US dollar in 2021, with USD/JPY soaring 7.3 per cent. In March alone, the dollar is up 3.8%, as US Treasury yields continue to head higher and lift the US dollar. The 10-year yield rose to 1.77% on Tuesday, marking a 14-month high and is currently at 1.73%.
The US recovery has gained traction, boosted by the massive 1.9 trillion dollar stimulus package and an aggressive vaccine rollout. The dollar could make further gains before the day is out, with President Biden revealing some details of the 3-4 trillion infrastructure package and the ADP Employment report projecting a stellar gain of 552 thousand (12:15 GMT).
Meanwhile, Japanese numbers this week have been soft, reflecting a weak Japanese economy. Retail Sales, Industrial Production and Housing Starts have all recorded declines. Investors will be keeping a close eye on the Tankan indices for Q1, which should be treated as market-movers. The Tankan Manufacturing index is expected to improve to -1, compared to -10 in the previous quarter. The Non-Manufacturing index is forecast to edge up to -4, compared to -5 beforehand. If either reading is weaker than the forecast, we could see the shaky yen break above the 111 level.
h2 USD/JPY Technical Analysis/h2- On the downside, there is support at 108.78. Below, there is support at 107.87
- There is resistance at 110.22, followed by resistance at 110.75
The dollar index rose 0.38% to 93.30 overnight, and is at 93.23 today in Europe. The index is now well clear of its 200-day moving average (DMA) at 92.50, with the technical picture suggesting further gains to 94.30 ahead.
Original Post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.