USD/JPY awaits fresh clues to cross 108.00, trade sentiment stays positive
- USD/JPY rally pauses after Japanese policymakers signal daily meetings to revive the economy.
- The steps to ward off coronavirus negative implications boosted the market’s risk-tone the previous day.
- Japanese trade numbers decorate the economic calendar, global wave to counter the pandemic in focus.
Having run the happy show, mainly for the US dollar bulls, the USD/JPY buyers await fresh clues while taking rounds to 107.60 amid the early Wednesday morning in Asia. Although the BOJ ramped up its efforts to tame the negative implications of the coronavirus (COVID-19), steps from the Trump administration and the Fed were the showstoppers the previous day.
The US government and the Fed rolled out multiple measures ranging from credit lines to businesses to help every American to ward off the pandemic. The same offered broad strength to the US dollar that was previous cheering risk-off moves.
In its latest effort, the Fed opened dealer credit facility for six-months for 90-days.
The BOJ also didn’t refrain to take steps in countering the deadly disease as it rolled out measures worth multibillion dollars to infuse liquidity into the markets.
Markets also cheered the policymakers’ fight against the disease as the US treasury yields and Wall Street marked gains after a few days of losses and disappointments.
Recently, policymakers from Japan announced to hold daily meetings that will include government officials and the BOJ reps to revive the economy from the shock of the virus.
Looking forward, investors will be keenly watching Japan’s trade data for immediate direction while any comments from the Fed and/or BOJ will steal the spotlight.
Technical Analysis
Not only 200-day SMA near 108.30 but a confluence of 50-day and 100-day SMAs near 108.85/90 also questions the pair’s bulls. Alternatively, pair’s declines below 105.60 can please the bears.