USD/JPY bulls struggling to defend 108.00 mark

  • Positive US-China trade developments continue to lend support.
  • Bulls lacked conviction amid firming Fed rate cut expectations.
  • Traders eye US retail sales data for some short-term impetus.

The USD/JPY pair reversed an early uptick to fresh multi-week tops and is currently placed at the lower end of its daily trading range, around the 108.00 handle.
The pair built on the overnight solid intraday up-move of around 60-pips and a subsequent closer above the 108.00 handle, albeit continued with its struggle to find acceptance/extend the momentum further beyond the 100-day SMA barrier.
It is worth mentioning that the pair on Thursday witnessed a sharp intraday pullback to mid-107.00s in reaction the US President Donald Trump's latest accusation that the Fed is not doing enough to support the US economy.

US-China trade optimism continues to underpin

However, a further improvement in the global risk sentiment, supported by encouraging signs that the United States and China were narrowing their differences over trade, continued attracting some meaningful dip-buying interest.
In the latest trade-related development, the WSJ reported on Thursday that China was seeking to narrow the scope for upcoming trade negotiations in early October, hoping to resolve some key issues and break the deadlock.
Adding to this, a Bloomberg news - citing people familiar with the matter - reported that the Trump administration officials are considering to offer a limited trade agreement to China that would delay and even roll back some US tariffs.
Despite supporting factors, the pair lacked any strong bullish conviction amid firming market expectations that the Fed will ease monetary policy further and cut interest rates at its upcoming meeting next week - September 17-18.
In the meantime, Friday's US economic docket - highlighting the release of monthly retail sales data - will be looked upon for some short-term trading opportunities later during the early North-American session.

Technical levels to watch


Today last price 108.02
Today Daily Change -0.08
Today Daily Change % -0.07
Today daily open 108.1
Daily SMA20 106.58
Daily SMA50 107.16
Daily SMA100 108.15
Daily SMA200 109.45
Previous Daily High 108.19
Previous Daily Low 107.52
Previous Weekly High 107.23
Previous Weekly Low 105.74
Previous Monthly High 109.32
Previous Monthly Low 104.45
Daily Fibonacci 38.2% 107.93
Daily Fibonacci 61.8% 107.78
Daily Pivot Point S1 107.68
Daily Pivot Point S2 107.27
Daily Pivot Point S3 107.01
Daily Pivot Point R1 108.36
Daily Pivot Point R2 108.61
Daily Pivot Point R3 109.03



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.

Feed news

Latest Forex News

Editors’ Picks

AUD/USD extends recovery gains to 0.6850 despite China’s coronavirus harming risk-tone

AUD/USD stays on the front-foot while taking rounds to 0.6845 amid the initial Asian session on Friday. The pair recently reacted to the preliminary readings of the Commonwealth Bank (CBA) PMI details for January.


USD/JPY falls to fresh lows, correcting on WHO statement

USD/JPY has tumbled to print fresh lows since failing on the 110 handle, scoring 109.26 and meeting the 200-moving average on the four-hour chart.


Crypto Today: Bitcoin bears force critical

BTC/USD is currently trading at $8,400 (-3.40%) in the afternoon in U.S. hours, as markets bears break critical $8500 price mark, allowing for a wave of further downside pressure. 

Read more

XAU/USD bulls challenging 1573 resistance level

XAU/USD is trading in a bull trend above its main daily simple moving averages (SMAs). After rejecting the 1600 figure earlier in January, the metal has been consolidating near the $1560 per troy ounce.

Gold News

GBP/USD pressured toward 1.31 amid risk-off mood

GBP/USD is trading around 1.31, off the highs. Coronavirus headlines are sending traders to the safety of the US dollar. Speculation about the next BOE move is rife.