Forex Flash: USD/JPY hampered by softer US data and yields - OCBC Bank

FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that the cooler than expected US March core PCE numbers and the consequent softening in US yields may continue to hamper USD/JPY upside in the near term.

As such, he continues to abstain from chasing USD/JPY upside at this juncture and will continue to adopt a buy-on-break posture. To reiterate, with inherent JPY weakness expected to be reduced in the short term, he sees that USD/JPY volatility may instead grow slightly more sensitive to US centric dollar prospects (i.e., look to US yields). In the interim, he expects initial support towards the 55-day MA (95.63). Moving to AUD/USD he notes that Australian March private sector credit numbers are due with markets looking for a slight improvement. He writes, “With global macro risks circulating, the 55-day MA (1.0348) may prove pivotal for the pair, with resistance expected into 1.0400 while support is seen on approach of 1.0200.”