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  • USD/JPY bounces off intraday low, still in the red for the fifth day in a raw.
  • A lack of major catalysts keeps the bears hopeful.
  • Odds of negative Fed rate confront coronavirus vaccine news from China, US and Japan stay cautious in visa restrictions.
  • Japan’s Industrial Production in focus for immediate direction.

The USD/JPY pair’s pullback moves from 106.60 fades upside momentum around 106.80 during the early Friday. Even so, the pair manages to remain on the sellers’ list for a fifth consecutive day while flashing 0.05% losses by the press time.

The post-US Federal Reserve meeting increase in the market’s risk aversion seems to lose momentum off-late. However, the Fed funds futures are renewing the call for a negative Fed rate and keep the risk on the table.

Elsewhere, China announced promising results of the COVID-19 drug’s clinical trials over animals. Further, Japan and the US remain cautious, as far as their visa restrictions are concerned, while suggest curbing the foreign inflow for at least some more time. Additionally, the US State Department is showing signs of leaving Iraq, which in turn flashes risk-positive signals.

Considering the aforementioned catalysts, the market’s risk barometers like the US 10-year Treasury yields and stocks in Asia flash mixed indicators. While the US bond yields recover from the monthly low, Japan’s Nikkei drop over 1.60% to 22,125 by the press time.

With April month Japanese Industrial Production up for publishing on 04:30 AM GMT, the pair traders may wait for the data before acting amid a quiet day. Though, the economic indicator is expected to remain unchanged with likely -14.4% outcome and could keep the pair at the mercy of risk catalysts for fresh impulse.

Technical analysis

The buyers are less likely to enter unless noticing a daily close beyond 107.80/85 region comprising 21-day SMA and an ascending trend line from March 12. As a result, April month’s low near 106.35 seems to lure short-term sellers ahead of May’s bottom surrounding 106.00.


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