USD/JPY backs off from 1.5-month high as S&P 500 futures turn red, Asian stocks report losses
|- The anti-risk Yen picked up a bid likely due to signs of risk aversion in the financial markets.
- The S&P 500 futures and Asian stocks are reporting losses.
The USD/JPY is trading at 110.80, having clocked a session high of 111.06 - the highest level since May 22.
The decline from 111.06 to 110.80 could be associated with the risk-off tone in the S&P 500 futures and the Asian equities.
At press time, the S&P 500 futures are flashing red; down 0.20 percent as opposed to 0.20 percent gain seen in early Asia. Further, Asian heavyweights like Shanghai Composite and Nikkei are down more than 1 percent.
Looking ahead, the currency pair risks falling in the red as the European FX desks may buy JPY in response to German political uncertainty.
Bulls need to clear the falling trendline hurdle
The resistance of the trendline sloping downwards from the August 2015 high and December 2015 high is seen at 111.00, if cleared in a convincing manner, would add credence to last week's bullish outside-day candle and confirm a long-term bearish-to-bullish trend change.
USD/JPY Technical Levels
Resistance: 111.00 (trendline hurdle), 111.40 (May 19 high), 111.65 (50% Fib of Dec 2016 high - March 2018 low).
Support: 110.59 (session low), 110.17 (200-day moving average), 109.84 (ascending 50-day moving average).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.