- USD/JPY refreshes intraday low, extends the previous day’s losses.
- Fresh US-China jitters, vaccine news weigh on risks amid quiet markets in Asia.
- S&P 500 Futures print mild gains while tracking Wall Street benchmarks but US 10-year Treasury yield remains depressed.
- US NFP will be the key, risk catalysts can entertain traders but Good Friday restricts the moves.
USD/JPY takes offers around 110.50, down 0.06% intraday, as markets in Tokyo open for Friday’s trading. Even if the Good Friday holiday restricts the moves, the latest challenges to risk, coupled with the extended weakness of the US Treasury yields, seems to keep the sellers hopeful ahead of the key US Nonfarm Payrolls (NFP) data.
The convictions of seven veteran Hong Kong activists, including barrister Martin Lee and media tycoon Jimmy Lai, sparked global fury against China. While the US State Department Condemned the move, Senate Majority Leader Mitch McConnell pushes the Biden Administration to gather international support to impose meaningful international consequences.
Read: US Senate Republican Leader McConnell criticizes conviction of veteran Hong Kong activists
Elsewhere, US Dr. Anthony Fauci, Director of the National Institute of Allergy and Infectious Diseases (NIAID), told Reuters on Thursday that the United States may not need AstraZeneca’s COVID-19 vaccine, even if it wins US regulatory approval. The same raises questions over the vaccine supply even if the health expert turned it down.
Read: US’ Fauci: US may not need AstraZeneca COVID-19 vaccine
Earlier, US President Joe Biden’s $2.25 trillion infrastructure spending plan witnessed criticism from the American business lobby and Republican Party. However, the same managed to propel the Wall Street benchmark, also likely to help S&P 500 Futures off-late.
Furthermore, the coronavirus (COVID-19) lockdowns in France and Canada join fears of covid strains, Brazil recently found one more variant, to weigh on the market sentiment.
That said, the US 10-year Treasury yields marked the heaviest drop in five weeks the previous day and are down 0.5 basis points to 1.67% by the press time.
Given the lack of data, following the upbeat March Monetary Base from Japan, USD/JPY traders should seek risk catalysts for fresh impulse. However, major attention will be given to the US employment data, up for publishing at 12:30 GMT.
Read: US Nonfarm Payrolls March Preview: Optimism and evidence this time?
Technical analysis
Unless breaking the 111.00 threshold, USD/JPY is likely ready to revisit the June 2020 high of 109.85. Meanwhile, an ascending trend line from January 11, 2021, near 111.40 adds to the upside barriers.
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