USDJPY is trading flat on Wednesday after increased optimism in the markets over a return to normal conditions weighed on the safe havens greenback and Yen.
转折点: 107.35
The USDJPY rose almost a percent at the start of the week after a statement from the Bank of Japan (BoJ) voiced concerns over a potential economic contraction.
The dollar-yen cross ended a volatile week on a lower note, closing down 1.5 percent on Friday.
The US dollar is stabilizing against the Japanese yen as markets process the recent series of interventions from the US Federal Reserve.
USDJPY reversed its losses on Friday amid a rebound in risk sentiment.
Risk off sentiment carried over the weekend to dominate markets at the start of the week.
The Japanese yen posted its largest daily gain since May 2017 on Friday, as investors flocked towards the currency for its safe-haven appeal.
Risk aversion continues to be felt in the market at the start of the week as new warnings from the WHO over the coronavirus epidemic shook investors’ risk appetite.
Global equities continued to rise on Thursday after news broke that China will be halving tariffs on select US goods next week.
The USDJPY extended its daily gains for a consecutive session on the back of increased risk appetite.
The USDJPY is currently trading around its daily high after US President Trump’s statement on the recent tensions between the US and Iran concluded in a softer tone.
The USDJPY pair has once again failed to penetrate the area close to 109.70, as Friday’s data dump of economic figures released by Japan sent mixed signals to the market.
The USDJPY has been trading in a very narrow band this week, confined to small movements within a 50 pips range.
The US dollar has gone back and forth during the trading session on Thursday, as we continue to see range bounded price action around the 50-day EMA and the 200-day EMA.