USD/JPY analysis: bouncing from fresh weekly low, but still bearish
|USD/JPY Current price: 106.33
- Risk sentiment and lower US yields leading the way lower for USD/JPY.
- Renewed selling interest below 106.00 could result in a retest of 105.24.
The USD/JPY pair traded as low as 106.05 but managed to bounce some from the level, anyway ending the day in the red. The pair reached a fresh weekly low on the back of sliding yields, as poor US data sent the yield for the 10-year note down to 2.80% intraday its lowest level since January. Risk aversion led the way lower in yields and the pair as equities fell following news that US President Trump plans to impose more tariffs on China, reviving concerns about a trade war. There won't be relevant releases coming from Japan during the upcoming Asian session that can affect the pair overnight. In the meantime, the 4 hours chart shows that the risk remains skewed toward the downside, as the pair developed all through the day below its 100 SMA meeting selling interest on approaches to it, now an immediate resistance around 106.60. Furthermore, technical indicators in the mentioned chart remain within negative territory, but without clear directional strength. Renewed selling interest below the 106.00 figure will likely result in a retest of February low at 105.24.
Support levels: 106.00 105.70 105.25
Resistance levels: 107.10 107.45 107.80
View Live Chart for the USD/JPY
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