The USD/JPY shoots as the feeling of risk weighs on the Yen as a safe refuge

• The USD/JPY quotes around 148.00, rising almost 2%, since the tariff truce between the US and China drives the appetite for risk.
• The US and China agreed to a 90 -day tariff reduction, with the US cutting the 30% and 10% tariffs, supporting the US dollar.
• The key support levels are 146.45, 146.29 and 145.69, while the resistance is 149.56, 149.62 and 150.37.

The USD/JPY torque is quoting about 148.00, with an increase of approximately 2% in the day, since the feeling of risk dominates global markets after significant advance in commercial relations between the US and China. During the weekend, the two economic giants agreed to a 90 -day tariff reduction, with the US cutting their tariffs on Chinese imports to 30% (from 145%) and China reducing their 10% tariffs (from 125%). This temporary decala has caused a rebound in risk assets, pressing traditional safe refuge currencies such as Japanese Yen.

The US dollar has increased in response to the commercial truce, supported by a strong increase in the yields of American bonds. The 10 -year American treasure performance has risen to 4.45%, reflecting a reduction in the expectations of short -term federal reserve features. Meanwhile, the American dollar index (DXY) has gained more than 1.25% up to 101,74, its highest level in a month, further pressing Yen. The governor of the Fed, Adriana Kugler, said that, although the tariff reduction is a positive development, the long -term impact on global supply chains remains uncertain, complicating the evaluation of the underlying strength of the US economy by the Fed.

On the Japanese side, recent data shows that the Japan current account surplus in March was 2,723 billion JPY, exceeding the expectations of 2,465 billion JPY. However, Japanese investors were net sellers of foreign bonds in March, reducing their exposure to assets abroad in the midst of volatile global markets. This trend highlights the cautious feeling among Japanese institutional investors despite positive commercial developments.

Technical analysis

The USD/JPY is showing a bullish signal, quoting around 148.00 with profits of approximately 2% today, near the upper end of its daily range (145.69 – 148.65). The Relative Force Index (RSI) is located in the 60s, suggesting neutral conditions, while the convergence/divergence of mobile socks (MACD) indicates a purchase impulse. Confirming further the neutral impulse, the Bull Bear Power quotes around 5, the amazing oscillator also indicates neutral conditions, and the ultimate oscillator (7, 14, 28) is located in the 60s.

The simple mobile average (SMA) of 20 days supports the purchase signal, while the 100 and 200 days Smas suggest sale, reflecting a mixed long term perspective. Both the 10 -day exponential (EMA) mobile average and the 10 -day SMA are found in the 140, aligning with the general upward feeling.

The key support levels are around 146.45, 146.29 and 145.69, while the resistance is around 149.56, 149.62 and 150.37. A rupture above 149.60 could point out a greater rise, while a fall below 146.30 could open the door to a deeper correction.

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