USD/JPY pierces 108.00 as risk-tone remains positive
- USD/JPY extends the previous day’s recovery moves.
- Upbeat comments from the US diplomats seem to fuel the risk-tone.
- Japan’s February month data-dump also performs its role.
- Virus headlines will be the key to fresh impulse.
USD/JPY holds onto recovery gains while taking rounds to 108.05, intraday high of 108.21, amid the Asian session on Tuesday. The pair recently took clues from the US policymakers’ statements while paying a little heed to Japan’s data-dump.
Japan’s February month data dump, including Retail Sales, Industrial Production and Unemployment Rate, overall flashed upbeat signals. While the Retail Sales (YoY) surprised markets by crossing -1.2% forecast to 1.7%, the preliminary reading of Industrial Production (MoM) also rose above 0.1% expected to 0.4%. Further, the Unemployment Rate remained unchanged at 2.4% with Job/Applicants Ratio slipping back below 1.47 forecast to 1.45.
US President Donald Trump, during his Task Force Briefings, said that he is prepared if the virus strikes again in the fall season while defying expectations of the nationwide stay-at-home order. Following that, US Treasury Secretary Steve Mnuchin, also commented on the speed of releasing the aid benefits and favored the risk-on further.
While portraying the trade sentiment, the US 10-year treasury yields gain five basis points (bps) to 0.72% while stock futures are also flashing mild gains by the press time.
Given the release of Japan’s February month data dump, investors are now likely to continue observing coronavirus headlines for fresh impulse.
Technical analysis
Buyers will look for sustained trading beyond 109.80 to target the monthly top surrounding 111.75. On the contrary, pair’s declines below 107.00 could recall 106.30 and 106.00 numbers to the south on the charts.