- USD/JPY registers five-day losing streak.
- Risk reset fails to respect comments from Japan’s PM.
- US data, coronavirus news in focus.
USD/JPY defies the pullback on Tokyo open while marking 0.10% loss to 107.10 amid the early Wednesday’s trading session. The recent change in the risk-tone seems to have weighed on the yen pair while paying a little heed to the Japanese PM Shinzo Abe’s comments.
Japan’s Prime Minister Abe is considered the request made by the coalition partner to pay a cash handout of 100,000 yen per month, per NHK Japan’s national broadcasting organization. The news also mentioned that the initial plan was to provide 300,000 yen (2,800 U.S. dollars), to households whose monthly income has dropped to a certain level in one month between February and June.
On Tuesday, Bank of Japan (BOJ) Governor Haruhiko Kuroda also reiterated, “BoJ will ease without hesitation if needed” at the G7.
Also on the positive side were the early-Asia comments from US President Donald Trump who pushed further for the earlier economic restart as well as expected record run in stocks soon.
Even so, the US 10-year Treasury yields and Japan’s NIKKEI, together with most Asian stocks, remain under pressure.
The reason could be cited by the International Monetary Fund’s (IMF) April outlook suggesting a 3.0% contraction in the global GDP during 2020.
While economic calendar seems light in Asia, the US data concerning March month Retail Sales and Industrial Production, coupled with the NY Empire State Manufacturing Index, could entertain traders. Also important to watch will be the Fed’s Beige Book and virus updates.
It’s worth mentioning that the global death toll for the coronavirus has recently crossed 150,000 while the cases are inching closer to two million, which in turn pushes the key global economies to extend previously announced lockdowns.
Technical analysis
The monthly low near 106.90 is likely an entry-point for the sellers targeting 106.00. Alternatively, a three-week-old falling trend line near 108.05 could keep the pair’s short-term upside capped.
Share
