USD/JPY: bets placed for more upside towards 111.00

Currently, USD/JPY is trading at 109.76, up 0.61% on the day, having posted a daily high at 110.59 and low at 109.71.

USD/JPY has taken one of the biggest post-French election round one hit as markets get risk-on due to the result. The pair opened on Sunday with a USDJPY gap in the mid-upper 109s while the broader tone is dominant. The safer havens such as the JPY and gold are underperforming all of the G10 currencies. 

The dollar, however, is lower within a 98.835 - 99.326 range, also down and by 0.8% while US 10-years are moving in the bearer side of the 2.2641 - 2.3232% range, albeit up 0.88% from Friday's close of 2.2480%.  

• US debt ceiling back in focus - Nomura
• Gold remains near daily lows on higher risk appetite

Meanwhile, this week’s risks leave JPY vulnerable to further downside as we look to Wednesday’s Trump tax proposal details, Congress n the debt ceiling, Thursday’s BoJ and ECB, and Friday’s Q1 GDP. For Japan,  there is also the releases of CPI, retail sales, and industrial production data. "The BoJ is expected to maintain an exceptionally dovish tone and underscore the need for continued accommodation as it releases its latest forecast for inflation and growth," explained analysts at Scotiabank, adding, "the near-term balance of risk favors JPY weakness."

USD/JPY levels

The analysts at Scotiabank offered technical analyses: 

"Short-term technicals: neutral-bullish—bearish momentum signals have shifted to neutral with risk of a push into bullish territory, and DMI’s appear poised to provide confirmation. 

USD/JPY’s pop has opened a clear gap between 109.50-109.80. Intraday congestion has emerged around the 21 day MA (110.12) along with near-term resistance above 110.50. We look to gains toward the April 11 open around 111."