USD/JPY holding around 107.00 amid risk-on mood
- Chinese President says China is considering opening up its economy.
- Wall Street stocks are up as the risk-on trade is back, helping supporting USD/JPY.
The USD/JPY is trading at around 107.13 up 0.35% on Tuesday as the bulls keep Wall Street stocks up.
Earlier in the day Chinese President Xi Jinping, in a policy speech said that he was considering opening up China’s economy and decreasing tariffs for autos and protect the intellectual property of foreign firms. The risk-on mood is back on Wall Street. Stocks are being supported with the S&P 500 Index trading at $2,648, the Dow Jones at $24,344 and the Nasdaq at $6,577. Safe-haven gold and yen are under pressure. Meanwhile, the US Dollar is on the backfoot currently trading below $89.70. However, the developments from the war in Syria have the potential to hurt the positive sentiment at any moment.
Wednesday will see the US Consumer Price Index and the FOMC Minutes’report.
Earlier in the US Session, the Producer Price Index in March set of data came in above expectations, however, the numbers had no significant impact as the market is more heavily focused on geopolitical developments around the globe, including the war in Syria. President Trump promised a “forceful response” to the alleged chemical attack which took place last Sunday near Damascus.
USD/JPY weekly chart
The market is trading above 106.92 (last week’s close). Bulls are trying to keep the bullish momentum of the last two weeks. The USD/JPY is trading below its 50, 100 and 200-period simple moving averages.
USD/JPY daily chart
The USD/JPY is trying to reverse its bear trend after it found a low on March 26. The bulls are struggling to close above the 50-period simple moving average since last Friday. The market is trading in a range between 106.61 and 107.51. The bulls will need to close above the 107.51 level and the 50-period simple moving average if they want the bullish reversal to succeed. Repeated failures above the 107 figure can lead to a pullback towards the 106 psychological level.
USD/JPY 4-hour chart
On the 4-hour chart, the USD/JPY is trading above its 50, 100 and 200-period simple moving averages confirming a bullish momentum in the pair. Supports are at 106.64 swing low and 50-period SMA and 105.65 swing low. The key resistance for bulls is 107.51, if the level is cleared, then bulls will set their eyes on the key psychological levels above at 108, 109 and 110.