- The emergence of new selling around the USD put some pressure on the USD / JPY.
- Risk appetite, rising US bond yields could help limit losses for now.
The USD intraday sell bias accelerated during the mid-European session and dragged the pair down USD/JPY to daily lows, around the 105.30 region in the last hour.
The pair failed to capitalize on its initial rise to three-day highs and witnessed a modest pullback from 105.50 amid the emergence of some new selling around the US dollar. Expectations of a COVID-19 vaccine by the end of this year affected the dollar’s status as a global reserve currency, which, in turn, was seen as a key factor putting some pressure on the USD / JPY pair.
However, the decline remains muffled amid market optimism, which tends to undermine demand for the Japanese yen as a safe haven. Global risk sentiment received a strong boost as hopes for further US fiscal stimulus measures revived. The flow of risk was evident by a strong rally in US Treasury yields, which could help limit deeper losses for the USD / JPY pair.
The pair has now tumbled into negative territory for the second consecutive session and remains at the mercy of USD price dynamics / broader market risk sentiment amid the absence of relevant US moving economic releases.
From a technical perspective, the emergence of some falling buying on Friday favors bull traders. However, the lack of a strong follow-up warrants some caution before positioning for any further appreciation moves in the short term. On the other hand, bearish traders could still expect sustained weakness below the key psychological level of 105.00.
Technical levels
USD/JPY
| Panorama | |
|---|---|
| Today’s Last Price | 105.34 |
| Today’s Daily Change | -0.04 |
| Today’s Daily Change% | -0.04 |
| Today’s Daily Opening | 105.38 |
| Trends | |
|---|---|
| SMA of 20 Daily | 105.46 |
| SMA of 50 Daily | 105.77 |
| SMA of 100 Daily | 106.39 |
| 200 SMA Daily | 107.38 |
| Levels | |
|---|---|
| Daily Previous Maximum | 105.46 |
| Daily Previous Minimum | 105.19 |
| Weekly Preview Maximum | 105.8 |
| Weekly Prior Minimum | 105.04 |
| Monthly Previous Maximum | 106.55 |
| Minimum Previous Monthly | 104 |
| Daily Fibonacci 38.2% | 105.29 |
| Fibonacci Daily 61.8% | 105.36 |
| Daily Pivot Point S1 | 105.23 |
| Daily Pivot Point S2 | 105.07 |
| Daily Pivot Point S3 | 104.96 |
| Daily Pivot Point R1 | 105.5 |
| Daily Pivot Point R2 | 105.61 |
| Daily Pivot Point R3 | 105.77 |
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Credits: Forex Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
