- The USD / JPY defies previous declines in the middle of the less active session on Good Friday.
- The risky tone is looking for a direction, the general weakness of the US dollar has finally played its part.
- The Easter holidays may limit liquidity but the opening of Japan could entertain Asian traders.
The USD / JPY recently broke the 10 pips range between 108.40 and 108.50 as it climbed to 108.56, currently close to 108.53, before the opening of Tokyo during the Asian session of Friday. The Good Friday holidays limit the pair’s movements as traders await the opening of the Japanese market for a new boost. The general weakness of the US dollar and mixed risk catalysts could also contribute to the lack of clarity.
The US dollar weakened earlier overall, cuts in the US unemployment rate and worrying comments by Fed President Jerome Powell contributed significantly to the greenback’s decline. In doing so, the US currency ignored the Fed’s move to give favors to medium-sized businesses.
Unemployed claims in the U.S. posted another six million figures, and the Fed chairman became the first major central bank leader to openly state his concerns in the second quarter of 2020.
Market risk tone remains mixed, 10-year Treasury bill yields falling four basis points (bps) to 0.73%, while Wall Street posted another day of gains at the end of its movements. Thursday.
Continuing, traders will keep their eyes open on the Japanese markets, the producer price index (PPI) for the month of March preceding the opening bell. It should also be noted that most of the stock exchanges are closed due to the Easter break and therefore a lack of liquidity could be observed during the day.
Unless providing a daily close below the 200-day SMA level of 108.35, buyers can still hope to aim for the weekly high around 109.40.