USD/JPY sustains the bounce around 109.30 amid USD rebound, tepid mood
|- USD/JPY remains in downside consolidation on the 109.00 level.
- Rising covid cases in Asia hurt stocks, lifts the USD demand.
- Gains in S&P 500 futures offer support, as focus shifts to US PPI.
Having found support at 109.00, USD/JPY attempted a recovery towards 109.50 in the overnight trades. However, the sellers fought back control, knocking off the pair to near the 109.20 region, where it now wavers.
The recovery attempts in the spot remain capped by the risk-off mood, as major Asian economies grapple with spiking covid infections, including South Korea, Japan and India. Some of these countries are back under lockdown restrictions, which is reflective of the negative tone seen in the regional indices.
However, the downbeat market mood-led revival of the haven demand for the US dollar has helped put a floor under the prices. The US dollar index recovers to 92.15, up 0.07% on the day, as of writing.
Additionally, the uptick in the S&P 500 futures combined with the stabilizing Treasury yields, following Thursday’s Fed Chair Powell-induced sell-off, renders USD/JPY supportive.
Meanwhile, on the JPY side of the equation, Japanese Chief Cabinet Secretary Katsunobu Kato said that the expert panel has agreed to firmer measures for Tokyo, Kyoto and Okinawa.
Separately, the country’s Finance Minister Taro Aso commented that the G20s new terminology on currencies is merely a clarification. Attention now shifts towards the US PPI data, as markets absorb the dovish remarks from Fed Chair Jerome Powell.
USD/JPY: Technical levels
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.