USD/JPY – Japenese yen hovering at 112 in light-data session

USD/JPY is unchanged in Monday trading. In the North American session, the pair is trading at 112.00, down 0.02% on the day. There are no Japanese events on the schedule. In the U.S., the Empire State Manufacturing Index improved to 10.1, beating the estimate of 8.1 points. On Tuesday, Japan releases trade balance.

With the Japanese economy feeling the squeeze of the U.S.-China trade war and the BoJ offering negative interest rates, there isn’t much to attract investors to the yen unless risk appetite drops sharply. Trade talks between China and the U.S. are continuing, but last week a U.S. official said that an agreement could be months away. Still any progress between the sides would be good news for the export-dependent Japanese economy.

The International Monetary Fund  downgraded its economic forecasts last week, lowering its estimate of Japanese growth. The January forecast of 1.1%  was lowered to 1.0%. The IMF said that the downgrade was due to weaker Japanese exports, a result of the global trade war. The IMF also lowered its forecast for global growth, from 3.5% in January to 3.3%. Earlier in the week, a BoJ forecast downgraded its assessment for three of the country’s nine regions. Nonetheless, BoJ Governor Haruhiko Kuroda remained optimistic, saying that stronger domestic demand will offset the decline in exports, which would enable the economy to grow at a moderate pace.

USD/JPY hits six-week high as positive vibes continue

Monday (April 15)

  • 8:30 US FOMC Member Evans Speaks
  • 8:30 US Empire State Manufacturing Index. Estimate 8.1. Actual 10.1
  • 10:30 BOC Business Outlook Survey
  • 12:00 British MPC Member Haskel Speaks
  • 13:00 US FOMC Member Evans Speaks
  • 16:00 US TIC Long-Term Purchases
  • 20:00 US FOMC Member Rosengren Speaks

*All release times are DST

*Key events are in bold

USD/JPY for Monday, April 15, 2019

USD/JPY April 15 at 9:35 DST

Open: 112.02 High: 112.10 Low: 110.89 Close: 112.00

USD/JPY Technical

S3 S2 S1 R1 R2 R3
109.37 110.28 110.90 112.16 112.93 113.70

USD/JPY posted small losses in the Asian session but recovered in European trade. The pair is steady in North American trade

  • 110.90 is providing support
  • 112.16 is under pressure in resistance
  • Current range: 110.90 to 112.16

Further levels in both directions:

  • Below: 110.90, 110.28, 109.37 and 108.11
  • Above: 112.16, 112.93 and 113.70

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.