USDJPY
USDJPY trades higher for the fifth day in a row as the risk-on sentiment returns to markets. The Feds intervention yesterday to buy unlimited amounts of Treasury bonds and mortgage-backed securities helped ease concerns over tightening USD liquidity.
The pair jumped to daily high after the Manufacturing PMI came in at 49.2, topping the forecasts of 42.8 in March. The Services PMI came in at 39.1 below the forecasts of 42. The Composite PMI dipped to 40.5 in March from previous 49.6. The Richmond Fed Manufacturing Index registered in at 2 below the expectations of 9 in March.
The United States Redbook Index came in at 1.7% on March 20 above the previous reading of 1.1%. The yearly reading for the Redbook Index increased to 9.1% on March 20 from the previous 8.5%.
In Japan, the Manufacturing PMI came in at 44.8 below the expectations of 47.6 in March. The Leading Economic Index registered in at 90.5 topping the forecasts of 90.3 in January.
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USDJPY is 0.17% higher at 111.32 as the rally that started on March 10 is intact, and the positive momentum accelerates after the pair breached above the 100-day moving average.
On the upside, immediate resistance for the USDJPY pair stands at 111.36 the daily top. The next hurdle will be meet at 111.71 the high from February 26th. The recent high from February 20th at 111.96 will provide the next supply zone.
On the other side, the first support for the pair will be met at 110.31 today’s low while extra bids will emerge at 109.86 the low from yesterday’s trading session. If the Japanese Yen gains momentum, the next support area will be met at 108.98 the 100-day moving average.