- Traders are likely favoring the USD during less active markets.
- Today’s US housing market numbers an offer intermediate push before BOJ and the US GDP.
The USD/JPY pair is on the bids near 112.00 during early Easter Monday when the majority of global markets are off except China, Japan and Singapore.
The pair seems to have taken clues of recently upbeat data and positive performance by the US equities to please buyers ahead of full volume trading to take place from Tuesday onward.
The risk tone is likely a bit upwards as the US 10-year treasury yields are nearly one basis point plus to 2.567%.
However, 112.15/20 area has been limiting the quote’s upside since March 05 and can again act as strong upside resistance.
Traders may concentrate on the US existing home sales for immediate impulse whereas gross domestic production (GDP) and monetary policy meeting by the Bank of Japan (BOJ) could become crucial going forward.
Also, risk events like Brexit and on-going trade talks between the US and China, not to forget the latest noise from North Korea and concerning Iran, might also direct near-term moves of the USD/JPY pair.
While today’s US March month housing market indicator is likely to be another disappointment from the same sector, soft US GDP and likely unchanged BOJ outlook amid overall economic optimism could weigh on the quote.
USD/JPY Technical Analysis
On the break of 112.20, buyers can aim for 112.70 and 113.00 while 113.30 and 113.80 may challenge the bulls then after.
Meanwhile, 200-day simple moving average (SMA) level of 111.55 and 111.20 comprising 50-day SMA may try disappointing sellers ahead of pleasing them with 110.80 rest-point.
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