USD/JPY has been on the move in Tokyo, attacking corporate offers on the 112 handle. USD/JPY is currently trading at 112.15, but for the most part, consolidating around the figure, up from a low of 111.96 and touching a high of 112.16 in the opening hour.
Overnight, USD/JPY was little changed around 112 in a risk-on environment but has struggled with tough resistance much through 112 the figure. Stock markets drove back the yen as rates rose. The US 10yr treasury yield climbed from 2.55% to 2.59% which was a one-month high while the 2yr yield rose from 2.39% to 2.41%. We saw slight gains in benchmarks on Wall Street with an advance in the financial sector although gains were capped by weaker health-care providers:
The Dow Jones Industrial Average (DJIA), +0.26% added 68 points, or 0.3%, at 26,452.45. The S&P 500 index eeked out a very modest 0.1% to 2,907. The Nasdaq Composite Index added 24.21 points, or 0.3%, to 8,000.23.
The next risk event will come in China’s March industrial production, retail sales, and Q1 GDP report.
” Headline GDP growth was 6.4%yr in Q4 18, with a median forecast of 6.3% in Q1. There seems to be little danger of a notable surprise on GDP, given that annual growth has printed no further than 0.1ppt from the Bloomberg median forecast every quarter since Q2 2015. Although consensus is already looking for a mild uptick in production (5.9%yr) and sales growth (8.4%yr), consensus expectation at this juncture is better seen as a combination of hope and forecasts,” analysts at Westpac explaind.
Valeria Bednarik, The Chief Analyst at FXStreet, explained that Tthe consolidative phase continues:
“The 4 hours chart shows that, despite having lost upward momentum, the downside potential remains limited, as a bullish 20 SMA continues attracting buyers on intraday