Forex Marketz Daily Forex News – Fully Markets Update
Looking at the U.S. dollar against the Japanese yen, the greenback has been inching higher. The USD/JPY Forex market has found support from rising Treasury yields as well as worsening coronavirus pandemic conditions in the euro area.
The Eurozone has been facing severe Covid-19 supply shortage as well as increasing new cases which has led to Germany, France and Italy to either impose or extend lockdown restrictions. This has also boosted the appeal of the safe haven U.S. dollar (USD).
Japan will publish some economic data on Monday. Japan is releasing monthly retail sales and retail trade data. Japan is also publishing monthly consumer price figures. The economic calendar for the United States, European Union and the United Kingdom is quiet on Monday.
Forex market sentiment is also souring as Biden prepares to open the wallet again. There are reports that President Joe Biden’s massive $3 trillion infrastructure deal will be partially funded by new taxes. This means less pressure on the Treasury to sell debt which should push Treasury yields lower.
However new taxes on the horizon is boosting the safe have U.S. dollar at the expense of other currency units including the Japanese yen.
Daily U.S. Dollar Technical Analysis (USD/JPY)
On Friday, the U.S. dollar easily conquered the upside barrier at 109.20 and rose above 109.60 for good measure as well. The benchmark USD/JPY Forex market should consolidate above 109.20 this week.
There is near term resistance in play at 110.00 with 110.30 then coming into play. These are not very strong upside barriers, however 110.30 yen could be harder to break above. A daily close above 109.30 yen opens the door for a congestion zone at 108.60 to 108.80 yen.
The 14 day relative strength index (RSI) is signaling overbought near 75.70 which could be good for USD/JPY sellers. While above 109.20 yen this sell signal is invalid. The first downside barrier lines up at 108.40 with 108.30 then coming into focus.
The 100 day simple moving average lines up at 105.15 yen. The 200 day simple moving average lines up at 105.53 yen.
