USD/JPY looking for buyers, aiming for 105.00
- Japan macro calendar is clear sailing until late Thursday's CPI showing.
- Trade war fears have pumped the Yen full of buyers, and the trend doesn't look over.
The USD/JPY pair is drifting upwards heading into the new week's Tokyo session, currently threading around the 104.85 level after touching into an early week low near 104.60.
Market fear riding high, Yen still on the buying list
Ongoing trade war fears on the back of trade tariff threats back-and-forth between the US and China continue to pummel risk appetite in markets, and this week is gearing up to be no different with traders bracing for the latest round in tit-for-tat bluster between the two major superpowers.
Japan has a quiet week on the macro calendar, and traders will be focusing on US final GDP figures due on Wednesday at 12:30 GMT before Japan sees March's CPI data at 23:30 GMT late on Thursday.
USD/JPY Levels to watch
The Yen has been on a tear against the US Dollar and March will be the third straight month of declines for the USD/JPY pair if the Greenback doesn't begin to recover soon. As FXstreet's own Valeria Bednarik noted recently, "The daily chart shows that the bearish potential remains firm in place, as technical indicators continue heading sharply lower within negative territory, while the pair is developing some 600 pips below its 100 and 200 DMAs, both bearish and with the shortest accelerating below the largest, all of which maintains the risk toward the downside, without dismissing a possible upward correction in the way. In the 4 hours chart, the pair is developing well below bearish 100 and 200 SMAs, while technical indicators hold near oversold territory, with no aims of changing course. The pair bottomed on Friday at 104.63, with a break below it favoring a decline down to the 103.00 region for the upcoming days."
Support levels: 104.60 104.25 103.90
Resistance levels: 105.20 105.60 106.00