USDJPY

USD/JPY – Consolidating on Risk Reset, 107-108 Up First

The Dollar was little changed against the Yen, finishing at 107.75 in late New York from 107.70 yesterday. The risk-on, risk-off dictated the moves in this currency pair with no data coming out of Japan last night and none scheduled for release today. The next Japanese economic report comes in tomorrow with Japan’s Flash Manufacturing PMI report. Reports overnight that North Korea’s leader Kim Jong-un was rumoured to be gravely ill put a bid on the USD/JPY pair. The source was from a website run by North Korean defectors. Markets questioned the accuracy of the report.

forex live charts FXCM 1 H USD JPY - 22 April 2020
forex live charts FXCM 1 H USD JPY – 22 April 2020

USD/JPY has immediate resistance at 108.00 (overnight high traded was 107.89). Immediate support can be found at 107.30 (overnight low 107.281) followed by 106.80 (strong). The latest Commitment of Traders/CFTC report saw speculative JPY long bets little changed at +JPY 22,643. USD/JPY will continue to find clues on the market’s risk profile which is unsettled. Until then look for a likely trade today of 107.20 to 108.20, prefer to buy dips.

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