USD/JPY attempts a bounce around 105.50 amid US stimulus optimism

USD/JPY in downside correction after Friday’s volatile trading.
The spot divided between weaker DXY, better Japanese data and US stimulus optimism.
Traders look to US stimulus and Japan’s virus updates for fresh cues.

Dhwani Mehta FXStreet

USD/JPY has bounced-off lows but remains confined in a narrow range around mid-105s, as markets remain in a wait-and-see mode in the aftermath of Friday’s US NFP report and incoming stimulus headlines.

The major is in a corrective downside mode after spiking to four-month highs of 105.78 on Friday before closing the day in red at 105.36.

The decline in USD/JPY was fuelled by the US dollar sell-off, in the wake of the employment data disappointment, with only 49K jobs added in January while the jobless rate ticked down to 6.3%.

Earlier on Friday, the spot rallied on the US stimulus hopes-led reflation trades and relative strength of the economic recovery.

So far this Monday, markets remain divided over the US stimulus optimism and broad-based US dollar weakness, courtesy of the mixed jobs data.

Also, the fact that Japan's benchmark index, the Nikkei 225, topping the 29,000 mark for the first time since 1990 could be also providing the lift to the major.

Meanwhile, the yen traders await a clear decision on the likely lifting of the state of emergency in some areas earlier than previously announced.

Asahi reported that the Japanese government is considering lifting the state of emergency ahead of its scheduled expiry on March 7.

Markets ignored upbeat Japanese current account and trade data, as the focus remains on the US stimulus developments and virus updates from Japan. The US data docket is light this Monday.

USD/JPY technical levels

USD/JPY

Overview
Today last price	105.50
Today Daily Change	0.09
Today Daily Change %	0.09
Today daily open	105.38

Trends
Daily SMA20	104.21
Daily SMA50	103.91
Daily SMA100	104.41
Daily SMA200	105.58

Levels
Previous Daily High	105.77
Previous Daily Low	105.34
Previous Weekly High	105.77
Previous Weekly Low	104.61
Previous Monthly High	104.94
Previous Monthly Low	102.59
Daily Fibonacci 38.2%	105.5
Daily Fibonacci 61.8%	105.6
Daily Pivot Point S1	105.22
Daily Pivot Point S2	105.06
Daily Pivot Point S3	104.79
Daily Pivot Point R1	105.66
Daily Pivot Point R2	105.93
Daily Pivot Point R3	106.09

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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