USD/JPY under pressure around 105.50 despite the US dollar rebound
|
- US dollar rebound fails to save the day for USD/JPY bulls.
- Sellers continue to lurk above 105.50 despite upbeat mood.
- Holiday-thinned trading could exaggerate the moves.
The minor recovery in the USD/JPY pair met fresh supply just above the 105.60 region, knocking-off the rates back to the midpoint of the 105 level.
The major fails to take advantage of the broad-based US dollar rebound, underpinned by the surge in the USD/CNH cross amid a central bank intervention. Meanwhile, concerns about the coronavirus resurgence across Europe appear to lend some support to the safe-haven US dollar.
The mixed Japanese macro news combined with a rise in the S&P 500 futures could likely cushion the pullback in the spot from daily highs.
Further, the positive sentiment around the US Treasury yields combined with holiday-thinned light trading could likely keep the buyers hopeful while putting them at risk of some exaggeration in the price action.
USD/JPY: Technical levels
“An ascending trend line from September 21, at 105.55 now, challenges the USD/JPY bears targeting the monthly low near 104.95. On the contrary, a downward sloping resistance line from July 01, at 106.05 now, becomes a tough nut to crack for the buyers,” FXStreet’s Analyst Anil Panchal notes.
USD/JPY: Additional 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.