USDJPY Higher As Risk Appetite Returns

USDJPY Daily Chart
USDJPY Daily Chart

USDJPY trades 0.22% higher at 107.64 in a volatile session. The pair hit the daily lows at 107.26 after worst than expected economic data from Japan. The Tankan business mood plummeted to fresh decade lows on coronavirus worries. The Japan manufacturers index came down to -30 in April versus -20 in March. The Tankan non-manufacturers index dropped to -23 in April vs. -10 in March, the lowest reading since 2010.

The Japanese Prime Minister Shinzo Abe will declare a nationwide state of emergency. The Prime Minister also said that they got the funds for the 100,000 Japanese yen cash handouts. Meanwhile, a survey of Japanese firms, shows that most of them felt the Japanese government’s $1 trillion relief package to battle the coronavirus crisis was insufficient and a little too late.  

On the technical side, the first resistance for the pair stands at 108.07, the daily high. The 200-day moving average at 108.30 is the next supply zone. A break above might test the 50-day moving average at 108.56.

On the other hand, immediate support for USDJPY will be met at 107.26 the daily low. If USDJPY breaks lower, the next support stands at 106.92, the low from yesterday’s trading session. More bids might emerge at 106.74, the low from March 18.  

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