USD/JPY bulls lapping up positive tones all around, eyeing 110 handle

  • USD/JPY holding in firmly bullish territories, awaiting next round of positive news.
  • China’s National Health Commission said the number of new, confirmed coronavirus cases fell to 2,478 from 3,062 a day earlier.
  • Federal Reserve's Chair, Jerome Powell, sounded positive in his semi-annual testimony to Congress.

USD/JPY ranged between 109.75 and 109.95, as the defensive yen was underperforming in a risk-on environment on Wall Street. At the time of writing, USD/JPY is stuck in a tight range between 109.76 and 109.88.

Markets await the next round of catalysts in economic data and a cautiously optimistic Federal Reserve chair Jerome Powell who continues his semi-annual congressional testimony, appearing before the Senate Banking Committee later today in New York.

A better risk sentiment on Wall Street

It was a better risk sentiment overnight since China’s National Health Commission said the number of new, confirmed coronavirus cases fell to 2,478 from 3,062 a day earlier, bringing the total to 42,638 on the mainland, including some of whom have since recovered and been released from treatment.

As a result, Wall Street rallied and US 2-year treasury yields rose from 1.40% to 1.42%, 10-year yields from 1.57% to 1.59%, lifting the US dollar and sending the yen and risk asset classes such as gold a touch lower. The S&P 500 and Nasdaq Composite each posting a record finish and the Dow Jones Industrial Average was virtually unchanged.

Such news has lifted risk appetite and sentiment in global financial and commodity markets (copper +0.97%, CRB index +0.44% time of writing) as it is signifying that the Chinese are making progress in combatting and containing the virus. 

Meanwhile, Federal Reserve's Chair, Jerome Powell, sounded positive but had a cautious tone in his semi-annual testimony to Congress, although there were enough upbeat assessments in his tone to support optimism on Wall Street:

"The FOMC believes that the current stance of monetary policy will support continued economic growth, a strong labour market, and inflation returning to the Committee's symmetric 2 percent objective. As long as incoming information about the economy remains broadly consistent with this outlook, the current stance of monetary policy will likely remain appropriate".

USD/JPY levels


Today last price 109.85
Today Daily Change 0.07
Today Daily Change % 0.06
Today daily open 109.78
Daily SMA20 109.52
Daily SMA50 109.27
Daily SMA100 108.88
Daily SMA200 108.38
Previous Daily High 109.97
Previous Daily Low 109.73
Previous Weekly High 110.02
Previous Weekly Low 108.32
Previous Monthly High 110.29
Previous Monthly Low 107.65
Daily Fibonacci 38.2% 109.87
Daily Fibonacci 61.8% 109.82
Daily Pivot Point S1 109.68
Daily Pivot Point S2 109.59
Daily Pivot Point S3 109.44
Daily Pivot Point R1 109.92
Daily Pivot Point R2 110.06
Daily Pivot Point R3 110.16





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