USD/JPY seesaws in a 60-pip range as bulls reclaim 124.00 on a positive mood
- The USD/JPY is advancing in the week by some 1.26%.
- A positive market mood lifts the greenback as investors shrug off geopolitical jitters.
- USD/JPY Price Forecast: Upward biased as bulls, eye the YTD high at 125.10.
USD/JPY records further gains in the week on broad US dollar strength as the Asian Pacific session begins. At 124.15, the USD/JPY remains buoyant, despite been trading in a narrow 55-pip range in the last three days, as the Eastern Europe conflict between Russia-Ukraine, extends for the sixth consecutive day.
Asian market futures trade with gains, shrugging off the Russia-Ukraine conflict woes
US equities ended the session in a mixed mood, contrarily to the upbeat tone of Asian market futures, which point to a higher open. On Thursday, investors shrugged off Russia-Ukraine chatters, despite Russian Foreign Minister Lavrov complaining that Ukraine’s new draft agreement presented to Russia does not fulfill Russia’s demands on Crimea and Donbas. Meanwhile, late reports said that Russia is regrouping troops as they prepare another offensive aiming to reclaim the Eastern regions of Ukraine, Donetsk, and Luhansk.
Thursday’s North American session witnessed Fed speaking, led by St. Louis Fed President James Bullard, who said that the Fed remains behind the curve trying to tame inflation. Bullard added that he would like to see the Federal Funds Rate (FFR) at 3.5% by the second half of the year.
Later on the day, Chicago’s Fed President Charles Evans stated that we [Fed] will going to get to neutral setting by the end of this year or early next.
The Japanese docket would feature the Current Account for February, and Consumer Confidence for March, as the highlights of economic data being reported. On the US front, Wholesale Inventories for February on a monthly basis will be unveiled.
USD/JPY Price Forecast: Technical outlook
The USD/JPY remains upward biased, but in the last three days, the Average Daily Range (ADR) has been 55-pips. The daily moving averages (DMAs) residing below the spot price further confirm the uptrend, and it’s worth noting that the 100-DMA at 109.48 is about to cross over the 200-DMA at 109.60.
That said, the USD/JPY first resistance would be 124.00. A breach of the latter would expose March’s 29 daily high at 124.30, followed by the YTD high at 125.10.
