USDJPY Fundamental Analysis

USD/JPY is consolidated in Tokyo while markets await the outcome of the FOMC. Currently, the 21 March USDJPY Fundamental Analysis shows that the pair is trading at 106.47, down -0.06% on the day, having posted a daily high at 106.56 and low at 106.44.

21 March, GKFX – USD/JPY was better bid yesterday from 105.93 early to 106.30 before steadying and then a further bout of demand took the pair as high as 106.61 in late European trade. In the US session, the range was between 106.34 and 106.54.  The pair ended the day higher by 0.4% with help from US yields.

US yields higher in anticipation of the Fed

FOMC meeting coming up, so what’s in store? – Nomura

“The US 10yr treasury yield rose from 2.85% to 2.88%, while 2yr yields rose from 2.31% to 2.33% (a fresh 10-year high). Fed fund futures yields were slightly firmer for distant meetings, continuing to price three more hikes by end-2018 (including tomorrow) but now almost two hikes in 2019. It seems the late money is on a more hawkish Fed outcome,”

analysts at Westpac explained.

On the fundamental side, the G20 meeting of finance ministers and central bank governors in Buenos Aires finished with a carefully airbrushed communique with familiar language on open trade, analysts at Westpac explained, noting that separate remarks by officials were more candid e.g. US Treasury Secretary Mnuchin saying the US is not afraid of a trade war.

21 March USDJPY Fundamental Analysis

Valeria Bednarik, chief analyst at FXStreet explained that in the meantime, the 4 hours chart shows that the pair is holding a couple of pips above a bearish 100 SMA, while technical indicators turned south within positive territory, leaning the scale toward the downside without confirming it just yet.

The bearish potential will increase on renewed selling pressure below the 105.90 level, with scope then to extend its decline to 105.24, February’s low.


This article 21 March USDJPY Fundamental Analysis was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

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