USD/JPY rises back above 109.00 as stocks erase losses

By FXStreet The decline of the USD/JPY pair from 109.38 (2-week high) found support at 108.60. From there it bounced to the upside and managed to rise back above 109.00. The Japanese currency lost strength across the board as US stocks turned positive. The Dow Jones is now up 0.24% and the S&P gains 0.15%; the Nasdaq is still down for the day (-0.30%) but is significantly off lows.

The pair is rising on Thursday, currently trading around 109.05/10, despite a worst-than-expected initial jobless claims report in the US. Tomorrow will be the turn of retail sales and wholesale inflation.

“A strong US retail sales report for April will be required to offer more fundamental support for USD/JPY in the near-term as the Fed remains cautious over resuming rate hikes. The lower bound of USD/JPY could be supported by market expectations of fiscal stimulus and Japanese policymakers’ efforts ahead of the G-7 summit, though market expectations of Abenomics have already declined among global investors”, said analysts from The Bank of Tokyo-Mitsubishi UFJ.

USD/JPY up but…

Today’s upside was capped again by the 109.40 area, like the previous two trading days. The wide zone located between 109.40 – 110.00 is again acting …read more

Source:: FX Street