USD/JPY crosses 200-day MA hurdle on risk reset in equities and upbeat US data

  • USD/JPY is now trading above the 200-day moving average of 111.32, having hit a low of 110.88 yesterday. 
  • Risk reset in equities is likely pushing JPY lower. At press time, the S&P 500 futures and major Asian indices are flashing green. 
  • USD/JPY scaled the 200-day moving average (MA) hurdle of 111.32 soon before press time and could rise further toward the 10-day MA, currently at 111.50 amid signs of risk reset with equities.  As of writing, the futures on the S&P 500 index are trading 0.20 percent higher on the day. Major Asian indices like the S&P/ASX 200, Nikkei are also flashing gains.  It appears the overnight risk-on action in the US equities has hit the Asian shores. The Dow Jones Industrial Average (DJIA) jumped 148 points or 2.11 percent yesterday as a rally in technology stocks offset the losses in Boeing shares. European stocks also rallied with banking shares gaining 1.5 percent.  As a result, the anti-risk JPY is being offered across the board. Possibly adding to the bullish tone around USD/JPY could be the above-forecast retail sales number released yesterday. Consumer spending, as represented by retail sales, rose 0.2% in January, beating the expected print of 0 percent. Excluding autos and gas, spending doubled expectations with a 1.2 percent gain.  With improved risk appetite, the currency pair risks extending gains toward the 50-day MA of 109.97.  Technical Levels

      1. R3 111.83
      2. R2 111.57
      3. R1 111.39
    1. PP 111.13
      1. S1 110.95
      2. S2 110.7
      3. S3 110.52
    Updated Mar 11, 00:00 GMT


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