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The USD/JPY pair trades little changed from its daily opening around 110.80, as Easter holidays kick-in, with reduced market activity. According to FXStreet’s Chief Analyst Valeria Bednarik, USD/JPY could reach fresh yearly highs.

See:  USD/JPY  to move downward as US yields set to curtail its gains – Rabobank

USD/JPY is consolidating near the year high

“US President Joe Biden announced a $2.3 trillion spending program to tackle the effects of the pandemic on economic growth, focused on infrastructure and climate change. The plan is the first part of a likely $ 4 trillion program. On taxes, he clarified that they wouldn’t hit anyone making below $400K a year.”

“The US macroeconomic calendar includes Initial Jobless Claims for the week ended March 26, foreseen at 680K, the final reading of the March Markit Manufacturing PMI, and the official ISM Manufacturing PMI, this last foreseen at 61.3 from 60.8 in February.”

“The USD/JPY pair lacks momentum amid the recent consolidation, but given that it holds near the year high, the risk is skewed to the upside.”