USD/JPY hits six-week high as positive vibes continue

Yen weakens on positive risk outlook

The positive shift in risk appetite toward the end of last week extended into this one, though activity was muted at the start of this Easter-shortened week. USD/JPY touched the highest since March 5 in early trading but settled back to hover around the 122.0 mark for the rest of the morning.

The strong rebound in China’s new loans in March reported on Friday and strong reports from the first few banks kicking off the reporting season are both helping to underpin risk appetite. The 55-day moving average on USD/JPY looks poised to cross above the 100-day moving average for the first time since January 10.

USD/JPY Daily Chart

Source: OANDA fxTrade

US-Japan trade talks begin

With US Trade Secretary Mnuchin issuing soothing words about the progress in the US-China trade negotiations, he’s now switching his focus to Japan as trade talks begin with that nation. Reports say that the talks will focus on goods initially, though Japan also wants service items to be included.

The first shots include Mnuchin calling for a currency clause to be included in any agreement, to which a former Japanese trade negotiator commented that it would not be fatal to Japan’s monetary policy. The first stage of the negotiations last through until tomorrow.

Collective sighs of relief

A slow start on the data front

There was not much in the way of data releases to upset the apple cart in Asia, and that trend looks to continue into Europe. There is nothing on the slate for either Germany of the Euro-zone and from Switzerland we only have March producer prices.

The US session features the NY Empire State manufacturing index for April and the Bank of Canada’s Business outlook survey. Speeches are due from The Bank of England’s Haskell and the Fed’s Evans.

The full MarketPulse data calendar can be viewed at https://www.marketpulse.com/economic-events/

OANDA Senior Market Analyst Craig Erlam joins Jazz FM to preview the upcoming week in the markets

Source: MarketPulse.com

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.