USD/JPY bounces-off lows near 104.10, not out of the woods yet

USD/JPY attempts a tepid from near 104.10 levels.
Bears still eye a test of September lows of 104.00.
The spot remains at the mercy of risk trends, USD dynamics.

Dhwani Mehta FXStreet

USD/JPY remains under heavy selling pressure ahead of the European open, as the bears eye a break below the September low of 104.00 amid persistent risk-off mood.

Thursday’s sharp rebound from five-week lows of 104.03 to 104.72 is almost nearing its end, as the sellers have returned with pomp and show this Friday.

The spot faces a triple whammy from COVID-19 resurgence-led risk aversion on one hand while easing travel restrictions in Japan and broad-based US dollar retreat also add to the weight on the major.

The safe-haven Japanese yen remains strongly bid, as surging coronavirus cases in the US and Europe dampen the market sentiment and drag the Asian stocks lower. The Nikkei 22 index closed 1.52% lower on the day while the S&P 500 futures slump over 2%.

Further, the Japanese government lowering infection risk advisory for China, Australia and others to level 2 from level 3 also helped the yen recover lost ground.

Meanwhile, the US dollar pullback from monthly highs against its main competitors, in the face of falling Treasury yields, exacerbated the pain in USD/JPY.

Looking ahead, it remains to be seen if the bulls manage to defend the 104 mark, as the US dollar could resurge if the risk-aversion deepens in European trading.

The solid US Q3 GDP-led recovery could be revived on fresh haven demand for the buck ahead of the US macro news and election next week.

USD/JPY technical levels

The bears now eye the September low of 104.00, below which strong support awaits at 103.75 (daily classic S2). Alternatively, Thursday high of 104.72 could be tested if the bulls take on control, with eyes on the 105.00.

USD/JPY additional levels

USD/JPY

Overview
Today last price	104.27
Today Daily Change	-0.35
Today Daily Change %	-0.33
Today daily open	104.62

Trends
Daily SMA20	105.23
Daily SMA50	105.51
Daily SMA100	106.08
Daily SMA200	107.15

Levels
Previous Daily High	104.73
Previous Daily Low	104.03
Previous Weekly High	105.75
Previous Weekly Low	104.34
Previous Monthly High	106.55
Previous Monthly Low	104
Daily Fibonacci 38.2%	104.46
Daily Fibonacci 61.8%	104.3
Daily Pivot Point S1	104.18
Daily Pivot Point S2	103.76
Daily Pivot Point S3	103.48
Daily Pivot Point R1	104.89
Daily Pivot Point R2	105.16
Daily Pivot Point R3	105.59

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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