USD/JPY probing Friday's highs in Tokyo

• USD/JPY is currently trading at 112.01 and between 111.93 and 112.09 in Asia.
• Bullish stance clear in the 4 hours chart.

The mood was positive on Friday following the positive China credit and trade data. M2 money growth rose to 8.6% (from 8.0% in the month prior), while March exports were up 14.2% y/y after falling by 20.8% in the month prior. "The improvements in credit data mitigated some of the anxiety around China’s 7.6% y/y drop in imports for March," analysts at ANZ Bank explained. 

With stocks on the rise, USD/JPY climbed from 111.60 to 112.10 with the yen being the worst performer in the G10. As for yields, Tthe US 10yr treasury yield rose from 2.49% to 2.56%, the 2yr yield from 2.35% to 2.40%.  

• The Dow Jones Industrial Average (DJIA), put up 269.25 points, or 1%, to close at 26,412.30.
• S&P 500 index climbed by 19.09 points, or 0.7%, to end at 2,907.41. 
• The Nasdaq Composite Index added 36.80 points, or 0.5%, to finish up at 7,984.16.

Key headlines and weekend press stories

USD/JPY levels

Valeria Bednarik, Chief Analyst at FXStreet, explained that from a technical point of view, the risk is skewed to the upside according to the daily chart for the USD/JPY pair.

"Additional gains are not yet clear, as despite settling above all of its moving averages, these last continue to lack directional strength, and confined to a tight range. Technical indicators in the mentioned chart hold on to daily gains, barely losing upward strength near overbought levels. The bullish stance is clearer in the 4 hours chart, given that technical indicators consolidate near daily highs, with the RSI currently in overbought territory, while the price settled well above all of its moving averages, and with the 20 SMA accelerating north above the larger ones."