USD/JPY: Good mood to continue the recovery – Bednarik

An outstanding US ISM Manufacturing PMI released yesterday gave investors a boost, as the USD appreciated. Meanwhile, data from Japan missing expectations make Valeria Bednarik, chief analyst at FXStreet, see a potential pickup for the USD/JPY.

Key quotes

“The USD/JPY pair retook the 109.00 level as the greenback continues to appreciate. Financial markets are showing less sign of concern about the coronavirus, despite the outbreak continues. (...) The improvement in mood was triggered by the upbeat US ISM Manufacturing PMI released Monday, so far unabated.”

“The macroeconomic calendar offered overnight Japan’s Monetary Base, which increased in January by 2.9% YoY, missing the market’s expectations of 3.1%.”

“USD/JPY has topped at 109.12, now trading a few pips below the level. The short-term picture is neutral, given that, in the 4-hour chart, technical indicators lost directional strength, the Momentum around its mid-line and the RSI at 57.”