USD/JPY climbs higher toward 108.50 on upbeat market mood

Latest US-China trade headlines improve the sentiment on Monday.
10-year US Treasury bond yield is adding more than 2%.
US Dollar Index staged a modest recovery following last week's drop.

Eren Sengezer FXStreet

The USD/JPY pair lost 50 pips last week and started to retrace its drop on Monday. As of writing, the pair was trading at fresh session highs at 108.42, adding 0.25% on a daily basis.

Risk on flows return on Monday

United States (US) Commerce Secretary Wilbur Ross on Monday said that the US was engaged in a "long-overdue reassessment" of the trade relationship with China and added that they had come very far along with phase one of the trade deal. Meanwhile, several news outlets reported that Ross met with Chinese Premier Li on the sideline of the ASEAN Summit.

Reflecting the upbeat market mood, the 10-year US Treasury bond yield is up more than 2% on Monday and the S&P 500 Futures is adding 0.5% to suggest that Wall Street's main indexes are likely to start the week on a positive note.

On the other hand, despite the upbeat labour market figures from the United States on Friday, the US Dollar Index closed the previous week 0.7% lower but seems to be staging a technical rebound on Monday. At the moment, the index is up 0.2% on the day at 97.32, allowing the bullish momentum to remain intact.

The ISM-NY Business Conditions Index and Factory Orders data will be featured in the US economic docket. Nevertheless, the risk perception is likely to remain as the primary driver of the pair's action.

Technical levels to watch for

USD/JPY

Overview
Today last price	108.4
Today Daily Change	0.22
Today Daily Change %	0.20
Today daily open	108.18

Trends
Daily SMA20	108.36
Daily SMA50	107.69
Daily SMA100	107.58
Daily SMA200	109.04

Levels
Previous Daily High	108.32
Previous Daily Low	107.89
Previous Weekly High	109.29
Previous Weekly Low	107.89
Previous Monthly High	109.29
Previous Monthly Low	106.48
Daily Fibonacci 38.2%	108.16
Daily Fibonacci 61.8%	108.05
Daily Pivot Point S1	107.93
Daily Pivot Point S2	107.69
Daily Pivot Point S3	107.49
Daily Pivot Point R1	108.37
Daily Pivot Point R2	108.57
Daily Pivot Point R3	108.81

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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