Back

USD/JPY slightly lower on weak China data

FXStreet (Mumbai) - The Japanese Yen strengthened a bit against the US Dollar, taking the USD/JPY pair slightly below 119.00 levels after Chinese trade data showed further economic weakness in the world’s second largest economy.

Gains in the Yen capped by strong US data

The slight risk aversion triggered by the weak China trade data did result in a slightly stronger Yen. However, broader gains remain capped due to the sharp rise in the 10-year Treasury yield in the US witnessed on Friday. A better-than-expected jobs data in the US pushed the 10-year yield to 1.9655 from 1.8%.

Moreover, a weak china data did push the 10-yr yield lower, although the losses in the yield are being capped around 1.90%. The resilience in the treasury yield is capping gains in the Japanese Yen.

USD/JPY Technical Levels

The pair currently trades 0.35% lower at 118.70. The immediate support is located at 118.64 (50-DMA), under which the pair could test 118.27 (5-DMA) levels. On the flip side, the resistance is seen at 119.20 and 119.80 levels.

Weak trade report adds to China growth concerns – BTMU

Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, views that China’s weak trade report has raised concerns over China’s growth, expecting that the contraction of exports by 3.3% and imports by 19.9% is likely to heighten concerns that authorities might weaken the renminbi.
Read more Previous

GBP/USD upward extension likely – FXStreet

Valeria Bednarik, Chief Analyst at FXStreet, notes that GBP/USD might move towards 1.5320/40 levels on a break above 1.5270 levels.
Read more Next