• USD/JPY stays on the front foot, up for fourth consecutive day.
  • Covid vaccine-linked optimism fades on fresh virus-led activity restrictions in Europe.
  • Geopolitical tensions, fears of early Fed rate hike add strength to the bullish bias.
  • Omicron, China and inflation are the key catalysts to watch for near-term directions.

USD/JPY picks up bids to refresh intraday top around 113.80 as Tokyo opens for Thursday.

The yen pair prints a four-day uptrend as yields stays firmer amid fresh coronavirus fears from the West, challenging the previous optimism that the South African covid variant, dubbed at Omicron, is milder than the previous strains. Also challenging the market sentiment and underpinning the US bond coupons are the chatters over the US-China and Fed rate hikes.

The re-introduction of the virus-led activity restrictions in Germany, France and the UK renews COVID-19 fears in the market even if major vaccine producers cite booster shots as effective to tame Omicron.

On the other hand, Sino-American tussles are likely escalating as US Assistant Secretary of Defense for Indo-Pacific Security Affairs Ely Ratner said, “Bolstering Taiwan's self-defenses is an ‘urgent task’ and an essential feature of deterring China”. Also favoring the risk-off mood are the news suggesting the diplomatic tussles of the Washington-Tehran and the US-Russia.

At home, Japan’s Prime Minister Fumio Kishida battles for the record covid stimulus in the Parliament as Tokyo registered the fourth Omicron case.

In addition to the virus-linked headlines and geopolitical fears, fresh chatters over the Fed’s rate hike, triggered by Reuters’ poll, also weigh on the US bonds and favor the Treasury yields, as well as the USD/JPY prices.

That said, the US 10-year Treasury yields rise 1.4 basis points (bps) to 1.52%, up for the fourth consecutive day, whereas S&P 500 Futures print mild losses at the latest.

Given the recent shift in the market sentiment, the USD/JPY is likely to remain stronger as markets brace for Friday’s US Consumer Price Index (CPI) data.

Technical analysis

A daily close beyond 50-DMA, around 113.55 by the press time, pushes USD/JPY prices toward October’s top near 114.80. However, the 114.00 threshold may offer an intermediate halt during the anticipated rise.

Additional important levels

Overview
Today last price 113.77
Today Daily Change 0.10
Today Daily Change % 0.09%
Today daily open 113.67
 
Trends
Daily SMA20 113.96
Daily SMA50 113.52
Daily SMA100 111.75
Daily SMA200 110.62
 
Levels
Previous Daily High 113.95
Previous Daily Low 113.31
Previous Weekly High 113.96
Previous Weekly Low 112.53
Previous Monthly High 115.52
Previous Monthly Low 112.53
Daily Fibonacci 38.2% 113.71
Daily Fibonacci 61.8% 113.56
Daily Pivot Point S1 113.34
Daily Pivot Point S2 113
Daily Pivot Point S3 112.7
Daily Pivot Point R1 113.98
Daily Pivot Point R2 114.28
Daily Pivot Point R3 114.62

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD falls toward 0.9600 amid renewed dollar strength

EUR/USD falls toward 0.9600 amid renewed dollar strength

EUR/USD has turned south and declined toward 0.9600 in the second half of the day on Monday. A sharp decline witnessed in the GBP/USD pair and the souring market mood provided a boost to the dollar, lifting the US Dollar Index back above 114.00. 

EUR/USD News

GBP/USD falls below 1.0700 following BoE statement

GBP/USD falls below 1.0700 following BoE statement

GBP/USD came under renewed bearish pressure and slumped below 1.0700 during the American trading hours. In a statement published on Monday, the Bank of England said that they welcome the government's commitment to sustainable economic growth, triggering another GBP selloff.

GBP/USD News

Gold could soon challenge the $1,600 level

Gold could soon challenge the $1,600 level

Demand for the dollar continued at the beginning of the week, resulting in XAUUSD plummeting to $1,626.67, its lowest since April 2020. Concerns about potential recessions undermined the dismal market’s mood, pushing the greenback higher despite its extreme overbought conditions.

Gold News

Bitcoin: Investors need to prepare for volatile breakout

Bitcoin: Investors need to prepare for volatile breakout

Bitcoin price has been devoid of volatility for the last week and has been in a tight consolidation without directional bias whatsoever. This range bound move has formed a triangle pattern which could break either way. 

Read more

Three stocks that will be in the news this week: Amazon, Nike, Micron Technology

Three stocks that will be in the news this week: Amazon, Nike, Micron Technology

The S&P 500 index lost 4.1% last week and left traders melancholy with another week to go in this dreadful September. The S&P 500 index is down 6.6% so far in the month that is already known for poor performance, and most seem to think the pain will continue. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures