USD/JPY clings to gains near session tops, just above 110.00 mark


  • USD/JPY gained positive traction for the third consecutive session on Tuesday.
  • The risk-on mood undermined the safe-haven JPY and provided a modest lift.
  • A subdued USD price action might cap gains ahead of the key US CPI report.

The USD/JPY pair traded with a mild positive bias through the Asian session and was last seen hovering near daily tops, just above the key 110.00 psychological mark.

A combination of supporting factors assisted the USD/JPY pair to edge higher for the third consecutive session on Tuesday and inch back closer to the overnight swing highs. The underlying bullish sentiment – as depicted by a generally positive tone around the equity markets – weighed on the safe-haven Japanese yen and acted as a tailwind for the major. Bulls further took cues from a modest uptick in the US Treasury bond yields, bolstered by expectations for an imminent Fed taper announcement.

That said, a subdued US dollar price action kept a lid on any meaningful upside. The USD bulls now seem to have moved on the sidelines and await the release of the latest US consumer inflation figures, due later during the early North American session. The CPI report could provide fresh clues over the likely timing of the Fed's tapering plan. This, in turn, will influence the USD and provide some meaningful impetus to the USD/JPY pair ahead of the crucial FOMC meeting on September 20-21.

In the meantime, the US bond yields might play a key role in driving the USD demand. This, along with the broader market risk sentiment, could assist traders to grab some short-term opportunities around the USD/JPY pair. From a technical perspective, the recent sideways consolidate price moves witnessed over the past four weeks or so points to indecision among traders and warrants some caution before placing any aggressive directional bets. This makes it prudent to wait for some strong follow-through buying before positioning for any meaningful appreciating move heading into the key data risk.

Technical levels to watch

USD/JPY

Overview
Today last price 110.07
Today Daily Change 0.08
Today Daily Change % 0.07
Today daily open 109.99
 
Trends
Daily SMA20 109.89
Daily SMA50 109.95
Daily SMA100 109.82
Daily SMA200 107.99
 
Levels
Previous Daily High 110.16
Previous Daily Low 109.84
Previous Weekly High 110.45
Previous Weekly Low 109.62
Previous Monthly High 110.8
Previous Monthly Low 108.72
Daily Fibonacci 38.2% 110.04
Daily Fibonacci 61.8% 109.96
Daily Pivot Point S1 109.83
Daily Pivot Point S2 109.67
Daily Pivot Point S3 109.51
Daily Pivot Point R1 110.15
Daily Pivot Point R2 110.32
Daily Pivot Point R3 110.48

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD slides under 1.16 as US Retail Sales smash estimates

EUR/USD is trading under 1.16 after US Retail Sales smashed estimates with 0.7% in September. Treasury yields are rising. The risk-on mood continues to underpin the pair, as the ECB policymaker Wunsch dismisses inflation concerns. 

EUR/USD News

GBP/USD retreats below 1.3750 after US data

GBP/USD has pared some of its gains after US Retail Sales beat estimates, with the core group hitting 0.8% last month. Earlier, investors shrugged off dovish comments from two BOE members. 

GBP/USD News

XAU/USD slumps to $1,770 area on upbeat US data, surging US bond yields

Gold started the last day of the week on the back foot and extended its slide to a fresh daily low of $1,770 in the early trading hours of the American session pressured by the dollar's resilience and surging US Treasury bond yields.

Gold News

Crypto bulls on winning streak pushing for more

Bitcoin price favors bulls reaching $60,000 by the end of this week and onwards to new all-time highs by the end of next week. Ethereum price broke a bearish top line and could hit new all-time highs by next week in tandem with Bitcoin. 

Read more

Why is Tesla going up?

Tesla's (TSLA) stock price has finally pushed higher in a series of steady and sure moves. We had nearly given up on our bullish call with Tesla stock as it kept struggling around the $800 level.

Read more

Forex MAJORS

Cryptocurrencies

Signatures