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USD/JPY meets supply again near 111.35 post-mixed Japan data dump

USD/JPY meets supply again near 111.35 post-mixed Japan data dump

The USD/JPY pair edged lower on Friday and eroded part of previous session’s up-move, albeit has managed to hold its neck above the 111.00 handle.

The Japanese Yen got a safe-haven boost following the US President Donald Trump’s comments on the geopolitical conflict in the Korean peninsula. Trump said that a major conflict with N. Korea is possible, although he wants the crisis to be resolved peacefully.

Meanwhile, market seems to have largely ignored mixed Japanese economic data – national CPI, industrial production and household spending missing expectations, while retails sales, jobs and Tokyo CPI printing stronger-than expectations reading.

   •  Japan: Core inflation still on uptrend – Nomura

Against the backdrop of recent disappointments from the incoming US economic data, including Thursday’s dismal durable goods orders data, investors now await the release of US advance Q1 GDP figures for some fresh impetus.

   •  US: Q1 GDP tracking estimate lowered by 0.6pp to 0.2% from 0.8% – Nomura

In the meantime, the broader market risk-sentiment would remain an exclusive driver of the pair’s movement through Friday’s trading session.

Technical levels to watch

Immediate support is pegged near the 111.00 handle, below which the pair is likely to accelerate the slide back towards 110.60-55 horizontal support ahead of the key 110.00 psychological mark. On flip side, momentum above 111.35 level (session top) might continue to face fresh support near 111.60-80 region, which if cleared decisively has the potential to lift the pair beyond the 112.00 handle towards testing 112.20 hurdle (March 31 high).