USD/JPY: attempting a recovery rally from below 200-HMA on uptick in Asian stocks

The demand for the anti-risk JPY seems to have weakened somewhat amid the positive action in the Asian equities.
A recovery rally will likely gather steam above the 200-hour moving average (HMA).

Omkar Godbole FXStreet Contributor

The USD/JPY is showing signs of life, having hit a low of 113.30 in the overnight trade.

The currency pair fell below the 200-HMA eight hours ago, possibly due to the risk aversion in the US stocks and the resulting demand for the anti-risk JPY. Further, the treasury yields dropped, weakening the bid tone around the greenback. For instance, the 10-year yield fell seven basis points to 3.09 percent and was last seen trading at 3.13 percent.

That minor recovery in the benchmark yield and an uptick in the Asian stocks may have put a bid under the USD/JPY. So far, however, a break above the 200-HMA of 113.62 has remained elusive.

Stocks in China, Hong Kong, and South Korea are reporting gains, while Japanese and Australian equities are flashing red. The USD/JPY could rise above the 200-HMA if the European stocks regain poise and the US retail sales, due at 13:30 GMT, blow past expectations, highlighting the strengthening domestic demand.

USD/JPY Technical Levels

USD/JPY

Overview:
    Last Price: 113.54
    Daily change: 4.0 pips
    Daily change: 0.0352%
    Daily Open: 113.5
Trends:
    Daily SMA20: 113
    Daily SMA50: 112.72
    Daily SMA100: 111.98
    Daily SMA200: 110.1
Levels:
    Daily High: 114.02
    Daily Low: 113.3
    Weekly High: 114.1
    Weekly Low: 112.94
    Monthly High: 114.56
    Monthly Low: 111.38
    Daily Fibonacci 38.2%: 113.57
    Daily Fibonacci 61.8%: 113.74
    Daily Pivot Point S1: 113.19
    Daily Pivot Point S2: 112.88
    Daily Pivot Point S3: 112.47
    Daily Pivot Point R1: 113.92
    Daily Pivot Point R2: 114.33
    Daily Pivot Point R3: 114.64

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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