USD/JPY climbs to one-week tops and retreats, slightly up around 105.40 area

USD/JPY turned positive for the fourth consecutive session and shot to fresh one-week tops.
Coronavirus jitters, worries of an economic slowdown continued benefitting the greenback.
The risk-off mood underpinned the safe-haven JPY and capped any further gains for the pair.

Haresh Menghani FXStreet

The USD/JPY pair edged higher during the early North American session and was last seen trading near the 105.40 region, just below one-week tops set earlier this Thursday.

The pair attracted some dip-buying near the 105.20 area and moved into the positive territory for the fourth consecutive session amid sustained US dollar buying interest. Growing fears about an economic slowdown amid the ever-increasing coronavirus cases continued boosting the greenback's status as the global reserve currency.

The market worries were further fueled by Thursday's release of the US Initial Weekly Jobless Claims. According to the data published by the US Department of Labor (DOL), 870K Americans filed unemployment-related benefits during the week ended on September 19th as against 866K previous (revised higher from 860K) and 843K expected.

However, the prevalent risk-off environment – as depicted by indications of a weaker opening in the US equity markets – extended some support to the safe-haven Japanese yen. This, coupled with a fresh leg down in the US Treasury bond yields, has kept a lid on any strong gains for the USD/JPY pair, at least for the time being.

Thursday's US economic docket also features the release of New Home Sales data. A scheduled testimony by the Fed Chair Jerome Powell and Treasury Secretary Steven Mnuchin will also influence the USD price dynamics. This, along with the broader market risk sentiment will assist traders to grab some meaningful opportunities.

Technical levels to watch

USD/JPY

Overview
Today last price	105.44
Today Daily Change	0.06
Today Daily Change %	0.06
Today daily open	105.38

Trends
Daily SMA20	105.68
Daily SMA50	105.94
Daily SMA100	106.7
Daily SMA200	107.68

Levels
Previous Daily High	105.5
Previous Daily Low	104.88
Previous Weekly High	106.17
Previous Weekly Low	104.27
Previous Monthly High	107.05
Previous Monthly Low	105.1
Daily Fibonacci 38.2%	105.26
Daily Fibonacci 61.8%	105.12
Daily Pivot Point S1	105.01
Daily Pivot Point S2	104.64
Daily Pivot Point S3	104.39
Daily Pivot Point R1	105.63
Daily Pivot Point R2	105.87
Daily Pivot Point R3	106.25

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.

Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.