USD/JPY’s unstoppable bullish run from near 112 handle ran out of steam just below 20-DMA at 113.41, and the major eased from there although stays above 113 handle.

USD/JPY sees more than 1 big figure recovery

A major turnaround in risk conditions towards Tokyo close and the subsequent risk-on trades extended into Europe helped the dollar-yen pair stage a solid recovery. The European equities snapped previous losses and rebounded 0.50% to 1.50%. While the oil prices regained momentum and extended higher, with the WTI rising 1.40%, while the Brent gains 0.85%.

The major remains firmer this session on expectations of improving manufacturing sector activity in the US last month. The ISM manufacturing PMI is expected to have improved to 48.5 in Feb versus 48.2 last, while PMI gauge from Markit is expected to remain unchanged at 51.0. Meanwhile, the sentiment on the Wall Street will also play a major role.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 113.34/41 (daily high/ 20-DMA). A break above the last, the major could test 114 (round number/ Feb 29 High). While to the downside, the immediate support is seen at 112.86/76 (10-DMA/ 1h 200-SMA) and below that at 112.20/16 (Feb 29 & Daily Low).

USD/JPY’s unstoppable bullish run from near 112 handle ran out of steam just below 20-DMA at 113.41, and the major eased from there although stays above 113 handle.

(Market News Provided by FXstreet)

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Japanese Chief Cabinet Secretary Yoshihide Suga was on the wires via Bloomberg earlier today, noting that PM Shinzo Abe is considering to hold a meeting of Japanese and foreign experts to hear their opinions on global economy and financial situation.

Key Quotes:

Details to be announced when they are decided

Idea came from Abe, as host of Group of Seven Summit

Separately, Japan’s Yomiuri newspaper reported that the details of the panel will be announced later today and that Abe, Finance Minister Taro Aso and central bank chief Haruhiko Kuroda are likely to be on the panel of experts.

Japanese Chief Cabinet Secretary Yoshihide Suga was on the wires via Bloomberg earlier today, noting that PM Shinzo Abe is considering to hold a meeting of Japanese and foreign experts to hear their opinions on global economy and financial situation.

(Market News Provided by FXstreet)

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Research Team at Investec, notes that the Euro area February inflation figures came in softer than expected as headline CPI inflation fell back into negative territory in February at -0.2%, its lowest rate in 12months.

Key Quotes

“The weaker reading will raise expectations of further easing at the ECB’s next Governing Council meeting on 10th March, where Draghi has stated that the council will ‘review and reconsider’ its policy stance. Investec’s view is that the ECB will announce another 10bp cut in the deposit rate taking it down to – 0.40%.”

Research Team at Investec, notes that the Euro area February inflation figures came in softer than expected as headline CPI inflation fell back into negative territory in February at -0.2%, its lowest rate in 12months.

(Market News Provided by FXstreet)

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