- USD/JPY rises to the highest levels in four days.
- Risk reset, downbeat data from Japan seem to have contributed to the pair’s run-up.
- Coronavirus continues to weigh on the market’s trade sentiment.
- US data, Chinese headlines will offer near-term direction.
USD/JPY takes the bids to 110.00 during early Wednesday. The risk barometer recently benefited from the uptick in Asian stocks. Also contributing to the pair’s run-up could be mixed data from Japan as well as risk reset based on catalysts from China.
Stocks in China, Hong Kong, Indonesia and Japan are marking mild gains ranging between 0.20% and 0.60% following the latest consolidation in risk-tone.
The underlying reason for the pair’s rise can be traced from the early-day release of Japan’s Machinery Orders and Merchandise Trade Balance.
Coronavirus numbers are flashing mixed signals off-late. While infections have been receding, the death toll is on a rise crossing 2,000 in mainland China.
Although headlines from China are likely to be the key drivers, the US housing market numbers and the Producer Price Index data will also be important to watch.